Private Investments

For many decades private asset investing has played a meaningful role in the construction of diversified portfolios within large pension funds and family offices, due to the unique benefits of this asset class.

Enhance returns

  • “Illiquidity premium”, barriers to entry, and low turnover of private markets lead to higher returns
  • Greater stability of income / cash flow
  • Increased protection against higher interest rates / inflation

Reduce portfolio volatility

  • Little / no short-term correlation with public markets
  • Less-frequent valuation
  • Lower risk of sudden / sharp losses

Capitalize on opportunities not offered in public markets

  • Private investment opportunities have expanded recently due to various factors, including changing bank legislation for lending as well as governments now seeking external capital for infrastructure projects due to fiscal restraints
  • Illiquid markets often present pricing inefficiencies, which create unique opportunities for the investor

Generate absolute returns

Our Approach

Focus Private Debt LP

Private debt refers to loans negotiated directly with private companies or individuals. These loans can vary widely in duration, security, seniority, collateral and return streams, but are most often short-term (1-3 years), secured, and with a floating rate.

The fund invests in direct lending, real estate lending, factoring, mezzanine debt and distressed (debtor-in-possession) financing.

The Private Debt Fund offers several benefits relative to public fixed income securities:

  • Enhanced returns – the result of less efficient markets, barriers to entry, specialized knowledge / expertise and an “illiquidity premium”
  • Lower volatility – most private debt is held to maturity and does not trade and reducing the volatility created by frequent “mark-to-market” of public securities
  • Floating rate loans provide protection against rising interest rates
Focus Infrastructure & Real Assets LP

Infrastructure & real assets are tangible investments that have intrinsic value due to their substance and physical properties. These investments provide the framework and resources that facilitate everyday economic activity. Some examples include:

  • Infrastructure – assets and networks used to transport, store and distribute goods, energy, people and information (e.g toll roads, pipelines, airports, data centres, cellphone towers)
  • Real Estate – land and commercial properties including apartment buildings, office buildings and warehouses
  • Farmland
  • Commodities
  • Precious metals

The Infrastructure & Real Assets Fund provides several benefits to investors:

  • Enhanced returns – less efficient markets, high barriers to entry, specialized knowledge / expertise requirements
  • Lower volatility – many real assets have contracted cash flows and are tied to demand for essential goods or services, which tend to be more stable than the general economy; also, these assets do not trade and are not subject to the volatility created by the constant “mark-to-market” with public securities
  • Inflation protection – limited supply and/or relatively fixed costs drive higher prices, revenues and intrinsic value during periods of inflation; some contracts have built-in inflation linkages
  • Diversification – real assets have historically had low correlation with financial assets