Why do you want to invest in private equity?
I want to diversify my wealth as much as possible, and this can be done across different asset classes. My portfolio consists of real estate, the capital from my company, private equity and several other investments. In terms of diversification, an investment in private equity within your portfolio is ideal.
What do you expect from investing in private equity?
Private equity is, in my view, a stable and well-performing asset class. It has proven itself in this way over the years, and that is also my expectation for the future. I also expect it to require little involvement from my side. As an entrepreneur running a business, as I do, you do not have the time or desire to monitor everything throughout the day.
Which alternatives for investing in private equity have you explored?
The story of how I came across BB Capital is actually quite funny. I had refinanced my real estate and needed to find a destination for the capital that had become available. I bought an Excel database online listing all private equity firms from A to Z. I started at the letter A and soon arrived at B, where I found BB Capital. I read up on the fund-of-funds and the evergreen structure. This appealed to me more than a fund that generates returns according to a hockey-stick curve. With the evergreen structure, your money is always fully invested. In addition, several other funds I found interesting had very high entry thresholds. But I discovered that the BB Capital fund-of-funds also invests in some of those larger parties. The fact that BB Capital enabled me to invest in a high-quality fund-of-funds was decisive for me.
What is the main objective in managing your wealth?
Diversification, a good return and little need to actively manage it. That combination is, of course, the most difficult to achieve. I simply like knowing that my capital is being put to work, without having to be actively involved myself. Even if that were to come at the expense of a few percentage points of return. So, suppose I could invest in an asset class that required my attention throughout the day and could potentially generate a higher return, that would not necessarily appeal to me more.
What appeals to you most about BB Capital’s private equity fund?
Especially the evergreen structure, which we discussed earlier, and the diversification. In my view, diversification is very important in order to cover as many risks as possible. It is the same as with stocks: you can invest in a single stock, or you can invest in index funds. In that case, I would also prefer to invest in index funds. I want to invest in a reasonably stable way. I also prefer investing in a fund-of-funds over investing in a regular investment fund. Suppose you invest in a regular fund with a portfolio of five to ten companies; I would still feel the need to keep a closer eye on those five or ten companies. What I like about the broad diversification within a fund-of-funds is that you do not need to know exactly which companies are behind it.
Why did you specifically choose BB Capital for investing in private equity?
For me, there is really no alternative, or at least I have not been able to find one. When I read about the fund-of-funds, I was immediately enthusiastic. Sometimes I think: it is such a strong model, why does no one else offer this? At BB Capital, your money is put to work immediately. After refinancing my real estate, I had capital available, so you want to invest it in full. If I were to invest one hundred thousand and keep another one hundred and fifty thousand aside, only to invest that amount gradually over three years, that would make little sense to me.
Learn more about investing in private markets through BB Capital?
After reading the interview with investor Wout, are you interested in learning more about the opportunities to invest through BB Capital?
Could BB Capital Fund Investments be right for you?
In the series ‘Investor stories’, investors share their experiences with BB Capital Fund Investments. Private equity can offer strong returns, averaging around 13% according to various international studies. For individual investors, these returns have traditionally been difficult to access. With BB Capital Fund Investments, you can now benefit from the opportunity to invest directly in a diversified portfolio of private equity investments. We invest your individual private equity capital independently and over the long term in the private equity sector, with a sustainable high return objective of 10–15% per year.
