Find the perfect replacement for a traditional LP structure and create flexible PE & PD portfolios.

Advantages

Asset Manager (AM)

  • Standardization of structure
  • Carry can be structured as capital gain
  • Fully transparent (AM can always see the full balance sheet)
  • AML stays with custodian
  • Combination of PE & PD possible​

Investor

  • Lower costs => more return
  • Diversification & potential performance generator
  • Fully transparent (market prices during the term as a performance indicator)

How that works

Private equity and private debt are a major component of today’s alternative investment universe and are a growing asset class for institutional investors wishing to diversify their overall asset allocation. Having said this, many market participants still hold little or no exposure to private equity/private debt, but are considering establishing or expanding their positions. The fundamental reason for investing in PE/PD is to improve the risk/reward-characteristics of an investment portfolio: it offers the investor the opportunity to generate higher absolute returns whilst improving portfolio diversification. The majority of PEs/PDs are unquoted companies, making it difficult for investors to participate.

Until now, the majority of investments in PE/PD were either directly invested or organized in fund structures. Direct investments, limited partnerships and funds consume substantial time and resources to set up, to maintain and to adapt to the regulatory framework (resulting in high TERs). However, with the GenTwo structure, AMCs on private equity and private debt, or a mix of both, can be established to provide a manageable and cost-efficient solution to access these alternative asset classes.

GenTwo offers a faster, simpler and more flexible vehicle into this investment universe leading to better performance potential and
growth.

 

Private Equity & Private Debt Project

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