Survey Records High Levels of Optimism for the Global Economic Recovery

Survey Records High Levels of Optimism for the Global Economic Recovery

The View

bull-1024x683 Survey Records High Levels of Optimism for the Global Economic Recovery

BlogKMC-copy Survey Records High Levels of Optimism for the Global Economic Recovery

Article written by Ken Carmody.

PwC surveyed 5,050 CEOs mainly within organisations with revenues ranging from $100m to over $25b in 100 countries and territories in January and February 2021. The bottom line is that 76% of these global business leaders predict that economic growth will improve in 2021. The PWC Annual Global CEO Survey shows optimism is especially prevalent in North America and Western Europe, with 86% and 76% of CEOs, respectively, from these regions anticipating improved global growth in the year ahead.

The PwC Annual Global CEO Survey certainly tallies with our own straw poll within the Finscoms investor network and is a great boon as we prepare for busy investment quarters ahead.

Here are our main takeaways:

The survey also highlights increased CEO confidence in revenue growth matching the long-term average. There is a wide variation seen across industries, reflecting the varying degrees to which consumer behaviour has ultimately been impacted by the global pandemic. CEOs within the technology and telecommunications sectors show the highest levels of confidence at 45% and 43%, respectively. Whereas, CEOs in the transportation and logistics (29%) and hospitality and leisure (27%) sectors are among the least confident about their chances of growing revenues over the next 12 months.

Interestingly, the survey findings also show that the US has increased its lead as the number one market for CEOs looking for growth over the next 12 months at 35%, seven percentage points ahead of China at 28%. In 2020, this is a six percent extension between the US and China in the favour of the US.

It is noted that US CEOs have bolstered their emphasis on Canada and Mexico as they move away from China. This is mainly due to new political developments and existing tensions. And on the other side of the coin, China CEOs report growing interest in large economies such as the US, Germany and Japan as prime destinations for exports.

At 17%, Germany stays in third place on the list of growth destinations. The UK, post-Brexit, moves up to number four (11%), overtaking India (8%). Japan also rises up the ranking to become the sixth most attractive growth destination, surpassing Australia.

IF​ ​YOU​ ​WOULD​ ​LIKE​ ​TO​ ​LEARN​ ​MORE​ PLEASE​ ​DO​ ​MAKE​ ​CONTACT​ ​AT MKT@FINSCOMS.COM

 

Ensuring Quality Deal Flow in Uncertain Times

Ensuring Quality Deal Flow in Uncertain Times

The View

Flow-1024x751 Ensuring Quality Deal Flow in Uncertain Times

BlogKMC-copy Ensuring Quality Deal Flow in Uncertain Times

Article written by Ken Carmody for Family Office Magazine. Click below for full magazine.

FOM-212x300 Ensuring Quality Deal Flow in Uncertain Times

With the current climate of increased volatility and turbulence many Family Offices are now sitting on dry powder waiting for the inevitable opportunities and lower entry valuations that a U-shaped recovery is characterised by. With volatility still relatively high, the VIX is currently twice as high as it was at the start of 2020 but significantly lower than mid-March peak of 83.56, how can you mitigate risk and find the right investments? How can you control and assist investments to help ensure success? More and more Family Offices are looking to clearly define their position within relevant sectors and build a reputation that attracts the best quality compatible investment opportunities. From this juncture many then choose to invest directly, provide strategic guidance, and/or take a position on the board for increased control and the provision of added support for the entity that they have invested in. With such an entangled investment strategy, entrepreneurs, nascent fund founders, project owners, start-ups etc are interviewing the investor to the same degree as they themselves are being interviewed by said investor.

Positioning and Reputation Promulgation

The inclination of the Family Office to become an alternative to venture capital has been rapidly growing due to a repositioning of the traditional Family Office investment strategy and risk appetite. “They are increasingly more open and active in venture, particularly in early-stage companies through direct investments and funds,” said John China, President of SVB Capital speaking in August at the release of the Campden Wealth Research Global Family Office. The report shows that Family Offices are increasingly allocating capital to early growth projects. Their latest report states that on average, 10% of overall Family Office portfolios are allocated to venture investing, “divided between direct investments (54% of the average VC portfolio) and funds (46%)”. The majority of Family Office investment allocations are made in the Seed and Series A rounds. The report shows us that this relatively new position of patient capital is providing returns of 14% on average and shows the importance of being well-positioned and being open to change.

Another example of clear positioning is the large move by Family Offices towards impact and ESG (Environmental, Social and Governance) investments. The attraction here is to be able to make a difference while making money. According to the UBS Global Family Office Report 2020, 39% of family offices intend to allocate most of their portfolios sustainably over the next five years, targeting exclusion-based strategies. This type of strategy is set to further increase significantly in the coming years.

To source high quality, attractive deals that match your criteria you must demonstrate clear definition of your objectives and let others know exactly what you are looking for. Be quite specific, allow people to know your sector preferences, your ticket size, EBITDA range, ROI expectancy etc this will narrow your focus and help with worthwhile matchmaking.

Building and managing your reputation will help your office to compete with private equity funds, banks etc in attracting quality deal flow. For example, by being helpful towards quality entrepreneurs whether you intend investing with them or not can help Family Offices to grow quality deal flow quicker than their peers. Within investment circles and entrepreneur networks word can travel fast about an investor who is a valuable source of expertise, ideas, and referrals. You will also need to clearly communicate what motivates your Family Office, your experience, your vision, and your values. This makes it altogether an easier task for potential value-alignment.

Direct Investment and Collaboration

There has been a significant increase in direct investment approaches by Family Offices over the past decade as Family Offices increase in sophistication. In the same recent Campden Wealth Research report, the research points to 76% of Family Offices investing directly in companies. On average, family offices in the study hold eight funds and 10 direct deals. Better value, greater control, and interest alignment are big motivations for this type of investment. Direct investments tend to be focussed in areas where families’ feel they have a competitive edge according to the latest Family Office Direct Investment Report from FINTRX.

Additionally, 72% of family offices provide strategic guidance, 70% participate on boards, and 70% facilitate investment networking according to the Campden report. These value-adds are what many organisations are now seeking as standard as these practices have been shown to help drive growth and returns. The Family Office is now seen as more than just a source of capital and this can help build a stronger more fruitful investment relationship.

The tendency among many investors is to wait to receive deal opportunities rather than getting out there and sourcing for themselves. Currently, we have noticed that the level and magnitude of network building during lockdown and restricted periods has increased due to the ease and acceptance of virtual meetings. It is as good a time as ever to proactively develop strong deal flow through the formation of relationships with companies and other deal sources. “Family offices are becoming a bit more public…. they are building a web presence…this is also partly a generational issue. People are now more used to sharing information and they are seeking deal-flow,” Russ D’Argento, founder and CEO at FINTRX, speaking earlier this year.  With the volume and appetite for webinars within the investment environs increasing there should be no shortage of opportunity to place yourself on a panel or develop as a thought leader via written articles and speaking roles. The most successful investment firms and direct investors that have developed an impressive network of deal partners, have representatives speaking at webinars, arranging break out web rooms with keen leads, and contributing in as much thought leadership as possible. Spending money on visibility is not vital but personal engagement is.

Forward-thinking Family Offices use their own stories as a way of uniquely competing against investment banks and private equity by striking a chord with certain entrepreneurs. How you craft and tell your story should not be underestimated. If your Family Office is looking to bolster its allocations for direct and quality alternative investments then, the onus is on you to be clear on your positioning and build a reputation that appeals to the most suitable investment opportunities.

IF​ ​YOU​ ​WOULD​ ​LIKE​ ​TO​ ​LEARN​ ​MORE​ PLEASE​ ​DO​ ​MAKE​ ​CONTACT​ ​AT MKT@FINSCOMS.COM

Finscoms Voted Financial Services Marketing Company of the Year

Finscoms Voted Financial Services Marketing Company of the Year

The View

Screen-Shot-2020-12-14-at-16.29.21-e1607969692917-1024x668 Finscoms Voted Financial Services Marketing Company of the Year

Finscoms is delighted to announce that it is a Corporate LiveWire Global Awards 2020 winner in the category Financial Services Marketing Company of the Year. During the awards process 90,000 businesses and corporate professionals, magazine contributors and Corporate LiveWire subscribers were invited to nominate companies and individuals based on factors such as service, innovation, experience, sustainability and other areas. Additionally, the Corporate LiveWire research team put forward a selection of firms which they felt were strongly deserving of recognition.

Corporate LiveWire noted Finscoms innovative approach to promoting and marketing the story of funds and projects ranging from ESG to infrastructure, from real estate to pharmaceuticals, from Fintech to Media and more. Finscoms manages clients across Europe, the US, and Asia whilst recently helping to launch a fund focussed on developing African communities socially and economically. Finscoms was also praised for helping to modernise the fund marketing approach by utilising the most sophisticated marketing tools that have proven successful in other industries.

“Finscoms was brought to market with many goals in mind but one of our main goals was to modernise the fund sector which has always been considered quite conservative and traditional. It doesn’t need to be one or the other, we’ve seen tremendous success when the traditional is blended with the modern.” commented Edward Simpson, Co-managing partner at Finscoms. “Receiving this award and being acknowledged in this way further strengthens our belief in our strategy of regeneration and rejuvenation of the capital raising process.”

Contact Finscoms via mkt@finscoms.com with queries about capital raising for your project or fund.

+353 1202 4444

Looking for Investment? Finscoms are Listening

Looking for Investment? Finscoms are Listening

The View

Search1080-1024x683 Looking for Investment? Finscoms are Listening

At Finscoms we receive many approaches from funds and projects looking to differentiate themselves from the rest and get attention from investors. As such we are in a position to cherry pick the best. Our screening and due diligence process leaves us to work with entities of which provide answers to market opportunities, and combine a sound business/financial model with corporate social responsibility, sustainability, scalability, and uniqueness.

These projects stand out from the rest as they also have compelling stories. We are proud to support them in translating their business strategy into stories that match our network’s vision and expectation. All projects and funds considered for advancement to our investor network are evaluated for their potential risk profile, impacts and economic quality.

The potential impact as well as the environmental and social risks of a project or fund are considered first. Projects are benchmarked by their social and environmental performance against conventional standards to ensure compliance and to test resilience. Projects and funds are also analysed quantitatively and qualitatively on technical and economic quality. Where possible we also use peer-group comparisons.

There are five stages to the Finscoms filtering process:

Step 1 – Submission

Candidates are invited to submit their details and marketing deck. If a nascent fund or project does not have a marketing deck we can help you to create one.

Step 2 – Preliminary Review

Once the marketing deck has been received into our ‘deal flow management system’ a member of our investment team will be assigned to your project for review. You will be notified if your enterprise will progress to the next stage or if it is declined. We provide brief feedback for each rejection.

Step 3 – Second Round

Bi-party NCNDA will be provided to protect both sides at this point. Further internal review by additional members of the Finscoms investment team. You will be requested to submit more detailed financial information about your fund or project at this juncture.

Step 4 – Video Interaction

We follow up with a video meeting to get a feel for your passion and enthusiasm for your enterprise. We dive in deeper to iron out any further questions from the internal review. Discuss strategy around bespoke targeting of investors rather than scatter gun approach.

Step 5 – Promote to Investors

Once our filtering stages are satisfied and once marketing materials are to our standards then, we introduce your project or fund to suitable investors in our network.

So, take the first step today and submit your details and marketing deck to mkt@finscoms.com. Don’t have marketing materials? Our marketing team are here to help.

mkt@finscoms.com  

+353 1202 4444

Latest Research from KPMG and AIMA Describes How Hedge Funds are Improving the IR Model in 2020

Latest Research from KPMG and AIMA Describes How Hedge Funds are Improving the IR Model in 2020

The View

IR1080-1024x597 Latest Research from KPMG and AIMA Describes How Hedge Funds are Improving the IR Model in 2020

BlogKMC-copy Latest Research from KPMG and AIMA Describes How Hedge Funds are Improving the IR Model in 2020

New research from KPMG International and the Alternative Investment Management Association (AIMA) shows that hedge funds are developing operations to become more robust, dynamic, and productive as they continue through the COVID-19 pandemic challenge. The report is conducted in real-time throughout the pandemic and surveys 144 hedge fund managers globally, representing an estimated $840 billion in assets under management (AUM). One of the key findings of this reports relates to the efforts of the majority of the surveyed funds to improve their Investor Relations (IR) function.

The importance of being face-to-face with clients and prospects cannot be overemphasised. During COVID-19 restrictions face-to-face meetings are near impossible and this has led to 58 percent of hedge fund managers taking steps to improve IR digital tools. Virtual meetings have increased in frequency and the expanded communications have helped to strengthen relationships between investors and managers. It has enabled the CEO and CIO to interact more regularly with many more investors. Going “virtual” has in many ways levelled the playing field, in the past small to medium sized funds struggled to persuade investors to travel to events, conferences, and in-person meetings. Now, investors are more open and flexible to such communication. If there is no means to satisfy the need for “in-person” due diligence, most investors would undoubtedly stay with those they already know and this of course favours the larger, more established actors in the market.

Screen-Shot-2020-09-14-at-15.44.45 Latest Research from KPMG and AIMA Describes How Hedge Funds are Improving the IR Model in 2020

“Ultimately, hedge funds will find the right balance of a more decentralized environment with the necessary face to face interaction in the office.” said Joseph Fisher, Senior Partner, Asset Management, KPMG in the US.

However, the absence of in-person meetings has required many managers to reconsider and restructure the way they manage investor due diligence and reporting. Bespoke reporting and services are being utilised and one-in-five say they are working to improve the transparency and risk reporting of their underlying funds. Operational due diligence meetings are happening via extensive video conferences. The decentralized workplace has brought with it new intricacies but the IR function broadly speaking is adapting and becoming greatly enhanced as a result.

“The hedge fund industry has been innovative, agile, and resilient through the pandemic, and our survey bears this out,” said Andrew Weir, Global Head of Asset Management, KPMG International. “They are evaluating their existing operating model and adjusting their core processes, cost structures and work environments so they are positioned to grow and meet the changing needs of investors.”

The report reveals a high level of satisfaction with GP communications, greater transparency and control during this difficult COVID-19 pandemic period. Due to this overt satisfaction we expect to see more bespoke client services offered by fund managers to their investors.

The COVID-19 challenge has demonstrated that hedge fund managers operations’ and services are resilient and dynamic. If anything positive is to come from this period of great disruption it will certainly be the advancement of IR within the investment industry.

Investing in the area of investor relations has shown to not only to forge existing relationships but also help create new business through referrals. As such, first class communication with clients is now seen as competitive advantage for those looking to differentiate and become best in class across all functions. Finscoms has ample experience in the IR sphere and are best placed to help enhance any existing IR model.

Ken Carmody

Chief Operating Officer

Mkt@finscoms.com  

+353 1202 4444

For more information about us