Record offers institutional investors a private equity strategy focused on acquiring minority stakes in privately owned asset management firms. Rather than investing in companies that manage products or services, this approach targets the firms that manage capital, providing indirect exposure to a broad range of private market opportunities.
The strategy is designed to generate returns from both capital growth and income. Investors gain from the increasing value of the asset managers themselves, as well as from recurring revenues such as management fees and profit-sharing structures. These returns are not tied to public markets, making them potentially attractive in periods of volatility or low yields across traditional assets.
By taking small equity positions across multiple asset managers, the strategy aims to reduce concentration risk. This spread also helps manage liquidity challenges often associated with private equity. The investment approach targets long-term growth but incorporates elements intended to protect against downside risk, particularly in market downturns.
Record plc (LON:REC) develops bespoke, high-quality, sophisticated solutions for institutional investors, a unique offering stemming from Record’s knowledge and expertise gained from its core currency hedging markets.
