Germany-Based Investment Consultants’ Asset Class Coverage and Client Location – July 2015

by Matthew Rautionmaa

  • 17 Jul 2015
  • PE
  • HF
  • PD
  • RE
  • INF

There are currently 15 Germany-based investment consultants covering alternative assets, according to Preqin’s Investor Intelligence. Investment consultants play a key role in providing investors with valuable insights and access when trying to gain exposure to the alternatives field. In the current context of uncertainty emanating from the debt crisis in Greece, of which Germany is a significant player, many European investors will rely on such expertise to provide guidance across their traditional and alternative investment portfolios.

The above table provides a sample of the 15 Germany-based alternative investment consultants, outlining where these firms’ clients are based, the services provided and the asset classes covered. As expected, all 15 of the firms have clients based in Europe. Munich Private Equity Partners and Kronstein Alternative Investment Advisors are the only two firms to have North America and Rest of World (ROW) based clients. Munich Private Equity Partners, which also acts as a fund of funds manager, is the only firm to have Asia-based clients. In regards to nature of service, two-thirds of Germany-based firms provide both discretionary and non-discretionary services. Of the remaining third, three firms provide non-discretionary services and two provide discretionary services.

The most common asset class that investment consultants located in Germany provide their services for is private equity, covered by 73% of firms. This follows the trend seen in the continent as a whole, as private equity is the most covered asset class (64%) among all Europe-based investment consultants, reflecting strong investor appetite for private equity. Similarly, infrastructure is covered by more than half (eight of 15) of Germany-based firms, in line with the 56% of consultants across Europe who provide services for the asset class. Real estate and hedge funds are both covered by a third of firms, which is low relative to all Europe-based investment consultants. The least covered asset class in Germany is private debt, with only four of the 15 firms providing expertise in the space; private debt as a distinct asset class is less mature than other areas of alternative investments. However, it is growing in importance in the portfolios of both managers and investors.

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