Our target investors are the clients that we are looking to serve. The relationship we want to build with them drives our investment strategy. Our target investor base includes diverse institutions such as corporations, insurance companies, sovereign wealth funds, government and private sector pension and retirement funds, charitable foundations and university endowments, family offices, and high net worth individuals. 

Our “Labyrinthine Path” is best suited for an institution that relies on the principles of correlation and that is looking to maximise its portfolio’s diversification by uniting different visions and approaches. Our proposed investment path can bring diversification to an institution investing funds within a clearly defined framework, with a precise objective and a definite investment horizon.   

We naturally expect our investors to adhere to our Founding Principles and to our Investment Philosophy. Most importantly, our investors must have the ability to assess the counterparty and illiquidity risks attached to our portfolio of assets.

We aim to serve institutions with the following expectations or requirements:

Capital Preservation

Fikula Capital Management is offering its investors a comprehensive Capital Preservation strategy aiming at protecting assets against a severe drop in value and other adverse factors or events.

Stable Style of Management

As a firm with a unique and stable style of management deriving from the general equilibrium of its very own “Labyrinthine Path”, Fikula is looking to serve investors who construct their portfolio on the premise that diversification based on the styles of management provides an effective solution to the problem of the instability of historical correlations.

By adopting a stable style of management, we offer our target investors an opportunity to take advantage of the fact that the complementarities of styles of management are more stable in time than historical correlations.

Geographical diversification

Our targeted investors have adopted the practice of diversifying their investment portfolio across different geographic regions in view of reducing their overall risk and improve the returns of their portfolios.

This practice gives us the opportunity to offer them an investment strategy whose main feature is the concentration of assets in Europe as a geographic region.

Safe-haven destination

Our targeted investors seek to invest their funds at the lowest possible level of country risk. We have therefore designed our model portfolio in such a way that the bulk of our portfolio of assets is invested in mature economies, with little political and economic turmoil, reliable and efficient legal systems, and diversified economic outputs.

As a firm specialising in the creation and development of small businesses with headquarters in Northern and Western Europe, we are fully aware that the place of incorporation of our portfolio companies is not a sufficient factor to lower our overall equity risk premium and influence the valuation of our whole portfolio of assets. That is why our investment strategy is to be executed in such a way that our exposure to country risk is at its lowest level possible through optimised revenue sources, production facilities, and risk management.

Preference for illiquidity

Our target investors are prepared to invest in non-liquid assets for several years. They are the “J/S Curve” takers who are willing to assume the risk of entrusting funds to a private equity firm aiming to construct a portfolio of companies that have yet to demonstrate their ability to generate revenue and profitability.

From a theoretical preference for illiquidity point of view, there is a difference between our target investor and our Target Exit Customer inasmuch as the latter is the holder of our Reference Portfolio looking to buy our Core Investment Portfolio at maturity while the former could be any investor willing to finance the development of our portfolio of assets at any point in time.

Alignment of interests

We can guarantee that our interests as investment managers will be at all times optimally aligned with our investors’.