Open Ended Solutions | Zentrix Global Ltd.

In the realm of alternative assets, fund structures have often been overlooked by investors in the past. Traditionally, private market fund vehicles have been predominantly closed ended, aside from hedge funds. However, there is a notable shift in manager focus towards launching open ended fund vehicles, resembling approaches familiar in public markets and hedge funds. While these open ended funds offer benefits for both managers and investors, they should be carefully considered alongside closed ended vehicles, each evaluated on its own merits. Zentrix Global has been at the vanguard of this opportunity, working with top tier private market managers.

Closed ended: Also known as "drawdown vehicles," these funds involve committing capital upfront, with investors waiting for their committed capital to be called and invested over several years. Utilizing a multi vintage program, diversifying investment across different periods, can enhance net returns while mitigating risks for investors.
Open ended: Referred to as "evergreen vehicles," these funds do not have a fixed term and continue indefinitely. Investors can stay invested for a duration that suits them, with underlying investments typically priced on a monthly basis to balance the interests of both buyers and sellers.

In this landscape, execution is crucial, and manager selection is paramount. With significant dispersion between successful and unsuccessful funds, choosing the right manager can lead to outsized returns compared to peers.

Our advisory offering

We are excited to offer advisory on open ended solutions as an alternative route to accessing the benefits of alternative investments. These solutions provide direct access to the asset class in an evergreen format, eliminating capital calls and offering clients greater visibility and control over their portfolios. This instant deployment also provides return benefits when compounding over time. With lower minimum investment requirements compared to traditional private market solutions, clients can construct diversified portfolios of open ended solutions to complement their existing investments. Open ended solutions offer private wealth investors a relatively efficient and straightforward way to access private markets.

We provide advisory solutions tailored to meet our clients' preferences, investment knowledge, and requirements, spanning both closed and open ended structures across private markets.

Our open ended infrastructure investment funds allow investors to benefit from real asset exposure while maintaining flexibility and easier liquidity compared to traditional closed ended structures.

Speak with an expert

Remember

Zentrix Global LTD. acts as a structuring arranger and independent adviser. It is not a bank, deposit-taking institution, investment fund or securities broker. Zentrix Global LTD. does not itself issue, confirm or guarantee any financial instrument, including any Standby Letter of Credit (SBLC) or Bank Guarantee (BG); such instruments are issued by regulated partner banks.

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Risk Warning

Risks of investing in private markets

The value of investments and any income from them can go down as well as up, and investors may not get back the amount originally invested. Past performance information presented is not indicative of future performance. Returns and costs may increase or decrease as a result of currency fluctuations.

Liquidity Risk: Investors may be unable to dispose of an investment quickly, or at a price closely related to recent similar transactions. There is no guarantee of distributions and no established secondary market.
Event Risk: A significant event may cause a substantial decline in the market value of all securities.
Long Term Horizon: Investors should expect to be locked in for the full term of the investment, which is subject to extensions.
No Capital Protection: Investors may lose the entirety of invested capital.
Unpredictable Cashflows: Capital may be called and distributed at short notice.
Economic Conditions: The ability to realise or divest from existing investments depends on market conditions and the regulatory environment.
Risk of Forfeiture: Failure to make call payments could result in forfeiture of commitment, including invested capital, without compensation.
Default Risk: In the event of default, investors risk losing their entire remaining interest in the vehicle and may be subject to legal proceedings to recover unfunded commitments.
Reliance on Third Party Management Teams: Investments will be managed by various third party management teams that will, in aggregate, determine the eventual returns for the investor.

The risk factors listed above are not exhaustive. Always ask for the product specific documentation for full details and risk disclosures.

Legal Information

This is a marketing communication from Zentrix Global, which is the main advisory business within the Zentrix Global Group. Advisory services are delivered by various Zentrix Global companies around the world, depending on local laws and regulations. The services described in this document may be provided by different Zentrix Global entities, and members of the Zentrix Global Group may also trade in the products mentioned here.

This document is not independent investment research under the European Markets in Financial Instruments Directive ("MiFID") or other relevant regulations and is not subject to restrictions on dealing ahead of its distribution. This means Zentrix Global and its staff may have an interest in the products or services mentioned before this document is shared with you.

The information in this document is for general information only and is intended for Zentrix Global clients. It does not constitute, and should not be construed as, legal, tax or investment advice, or a solicitation, offer, or recommendation to buy or sell any financial products or services.

Some Zentrix Global Group offices may act only as representatives of Zentrix Global and are not permitted to sell products, provide services, or offer advice to customers. Not all products or services are available in all jurisdictions.

Before proceeding, please refer to the full long macro disclaimer and the Terms and Conditions available at our website, which provide further important information about the use of this material.