Richard Abrahams’ Post

Investors are turning toward a more flexible way of investing. The independent sponsor model provides more control over investment decisions, greater flexibility on specific investments, no fees on uncommitted capital, and lack of restrictions on time horizons. https://loom.ly/1CGD3gs

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. The Access EIS Fund is built on data to deliver optimal return potential for investors. But it’s also built to give investors as much control over their investment as possible. If you’re trying to choose an EIS fund, this is how we differ from the rest: 💡 The Access EIS Fund 💡: Is open all year round and typically begins deployment of each investor’s funds within two weeks, putting your money to work quickly. Most other funds: Are open for short periods to receive money, during which time they are not deploying the money they receive. 💡 The Access EIS Fund 💡: Builds each individual investor a unique portfolio of 50+ companies, based on when you invest, and the investments the fund makes during your deployment (this can help for lining up your cashflow, tax relief, and tax year planning). Most other funds: Give every investor the same 10-15 company portfolio, based on when the fund closes to deploy (in some cases, funds choose companies based on their round timings, and not on quality). 💡 The Access EIS Fund 💡: Gives each investor a digital dashboard with information on the performance of every company in your portfolio, and easy access to EIS documentation. Most other funds: Will send updates, but won’t let you monitor your portfolio online. 🌟 Start building your portfolio now with the Access EIS Fund 🌟 Our fund co-invests with proven angel investors to build large portfolios of hand-picked companies for our investors. It’s a high risk investment, and we can’t guarantee that every startup will be a unicorn, but we’re confident that our approach is the smartest on the market. Even better, we can show you the data to prove it. If you’re interested and would like to find out the benefits of investing towards the start of the tax year, book a time to speak to us directly https://lnkd.in/eq_Rc8mm. Or take a look at our most recent portfolio results highlights here: https://lnkd.in/e9Ch6UDb

💷 How Do Your Funds Charge You? Investment Costs Explained Investing in funds can be a smart way to grow your wealth, but have you ever paused to consider how these funds charge you for their services? Understanding the different types of charges and their impact on your investments is crucial for every savvy investor. Let's break it down: 👩💼 Annual Management Charges (AMC): This is the fee that fund managers charge for managing the investment. It's a percentage of your investment value, typically ranging from 0.1% to 1.5%, and can significantly affect your returns over time. 💻 Platform Fees: If you're investing through an online platform, they might charge you a fee for using their services. This could be a flat fee or a percentage of your assets. 📈 Performance Fees: Some funds charge a fee based on how well the fund performs against a specified benchmark. It's a way to incentivize fund managers, but it can also eat into your profits. 🤝 Transaction Costs: Every time the fund buys or sells assets, there are transaction costs involved. These aren't always obvious but can impact the fund's overall performance. 🚪 Exit Fees: Planning to withdraw your money? Some funds charge an exit fee, so be sure to check the terms before you invest. 🤔 Understanding these fees is the first step to making more informed investment decisions. By choosing your investments wisely and keeping an eye on the costs, you can ensure that your money works harder for you. #InvestmentCosts #FinancialLiteracy #UKInvesting #PersonalFinance #AssetManagement

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. The Access EIS fund is built on data to deliver optimal return potential for investors. But it’s also built to give investors as much control over their investment as possible. If you’re trying to choose an EIS fund, this is how we differ from the rest: 💡 The Access EIS Fund: Is open all year round and typically begins deployment of each investor’s funds within two weeks, putting your money to work quickly. 🕯 Most other funds: Are open for short periods to receive money, during which time they are not deploying the money they receive. 💡 The Access EIS Fund: Builds each individual investor a unique portfolio of 50+ companies, based on when you invest, and the investments the fund makes during your deployment (this can help for lining up your cashflow, tax relief, and tax year planning). 🕯 Most other funds: Give every investor the same 10-15 company portfolio, based on when the fund closes to deploy (in some cases, funds choose companies based on their round timings, and not on quality). 💡 The Access EIS Fund: Gives each investor a digital dashboard with information on the performance of every company in your portfolio, and easy access to EIS documentation. 🕯 Most other funds: Will send updates, but won’t let you monitor your portfolio online. Start building your portfolio now with the Access EIS Fund Our fund co-invests with proven angel investors to build large portfolios of hand-picked companies for our investors. It’s a high risk investment, and we can’t guarantee that every startup will be a unicorn, but we’re confident that our approach is the smartest on the market. Even better, we can show you the data to prove it. If you’re interested and would like to find out the benefits of investing towards the start of the tax year, book a time to speak to us directly https://lnkd.in/eq_Rc8mm Or visit us at https://lnkd.in/dUUKseZV

Everyone talks about incentives. Such a fancy word. But people disagree. 1⃣ An investment fund's management fee can be based on "Committed Capital" (total fund size) or 2⃣ An investment fund's management fee can be based on "Invested Capital" (only capital actually deployed) Where do you stand? 🫲Many people like 1⃣ (Committed Capital) because it incentivizes GPs to wait to deploy capital into the best deals. They don't want the GP buying assets just to prop up its management fee. 🫱Others prefer 2⃣ (Invested Capital) because they think it's unfair for the GP to earn fees before they actually make investments. They want to incentivize investment. For what it's worth, many funds go with Option 1⃣ during the fund's "Investment Period" (typically the first half of the fund's life) and then switch to 2⃣ for the second half of the fund's life. (Note: I realize there are other ways the management fee can be calculated, but these are two very common ways)

Alignment, Quality, and Trust are the three cornerstones of Blackwattle Investment Partners. Being a new investment manager often takes time to build trust in the market. Beyond consistent top-tier performance, one of the many ways Blackwattle aims to build trust is reducing fund capacity limitations by ~50% compared to peers. We believe that when an investment fund becomes too big, it faces several disadvantages: 1.   Diminished Flexibility: Large funds often find it challenging to swiftly enter or exit positions without significantly impacting market prices. This lack of flexibility can hinder their ability to capitalise on short-term opportunities or adjust their portfolio in response to changing market conditions.   2.   Slower Decision-Making: With more stakeholders and layers of decision-making, the process of implementing investment decisions can become slower. This lag in decision-making can result in missed opportunities or an inability to react promptly to market developments.   3.   Dilution of Alpha: As funds grow larger, it becomes increasingly challenging for managers to generate alpha because their investment choices can have a smaller impact on overall fund performance. This dilution of alpha can lead to lower returns for investors.   4.   Limited Investment Universe: Large funds may be constrained in their investment universe. They may be forced to focus on larger, more liquid assets, limiting their ability to invest in smaller companies or niche markets where significant opportunities for outperformance may exist.   5.   Performance Pressure: Large funds may face heightened pressure to deliver consistent performance, especially if they have attracted substantial inflows from investors. This pressure can lead to risk-taking behaviours or deviations from the fund's original investment mandate in pursuit of higher returns.   6.   Difficulty in Maintaining Investment Style: As funds grow, maintaining a consistent investment style or philosophy becomes more challenging. Portfolio managers may be compelled to deviate from their preferred investment approach to accommodate the fund's size or meet performance expectations. Overall, while large investment funds offer economies of scale and potentially greater resources, they also encounter significant challenges that can hinder their performance and ability to meet investor objectives. https://lnkd.in/gh_xYz7w

When it comes to portfolio investment strategies, you have many options—buy and hold, market timing, portfolio diversification, and more. Learn how to find the right fit in our blog post: https://hubs.li/Q02L71cr0 #SocotraCapital #HardMoney #RealEstateInvesting

JSK Advisory Weekly Insight When investors invest in investors… - Rumor has it that it takes one to know one. So, are professional investors the best owners of professional investment firms? - Private equity investors seem to think so, as they have been on a buying spree, acquiring stakes in other investment firms at an accelerating clip. Pioneered in the US by the likes of Dyal (now Blue Owl Capital) and Petershill Partners (IPOed in London by its original owner, Goldman Sachs, in 2021), GP-stakers (buyers of stakes in general partnerships) now invest across investment specialties, including liquid asset classes - In the first half of this year alone, the private equity industry invested more capital to acquire European investment firms than in any year since 2019. There have been 39 buyouts in the sector worth more than €14 billion, compared to 50 deals worth €8 billion in 2023 - PE investments in the investment management space is driven by the value creation potential of firms with relatively predictable revenue streams from management fees, which have historically been under-managed by their founders, and need scale and diversification. Recent lower valuations due to high interest rates, the rise of passive investing and shrinking margins for small to mid-size managers have helped turn them into attractive targets - Not every investment in investment firms is paying off though, as they require deep knowledge of the idiosyncrasies of investing and managing a team of investors, on top of the traditional investing playbooks. We are here to help! Source: Pitchbook PE buyouts value and count among asset managers

Building a home requires careful planning and so does an investment portfolio. Find out how asset allocation can be your blueprint for investment success.

Our latest innovation, the Investment Proposal Generator covered by Brandon Russell in IFA Magazine. At P1 Investment Services we're always looking for new ways to make the advisory process more efficient for advisers and their clients, and our Investment Proposal Generator is just one way we have achieved this. Want to learn more about how the P1 Platform can improve your advisory process? Get in touch with Shaun Drew. #advicenotadmin #investmentmanagement #financialadvice #investmentplatform