What actually is an alternative investment? And how is our alternative fund providing value to your clients?
Pascal Bouvier. —“An alternative asset is a private asset. As opposed to a publicly traded asset, a private asset is not as liquid, and is also an asset where asymmetric information can deliver superior returns to an astute investor. Our MiddleGame Ventures funds invest in the future of the financial services industry, in the form of equity investments in fintech startups (financial technology startups delivering technology and digitization solutions for financial services participants).
The financial services sector accounts for only 5% of the GDP of an EU country and in some cases up to 25%. It is critical to the good functioning of our economies. We deliver superior returns by investing in the digital champions of tomorrow in the financial services sector.
What’s your view on the current fund-raising environment?
“Public markets have been very volatile, with the tech sector being particularly impacted. This has spilled over into the private sector, where startup valuations of have tumbled from the highs of the past 10 years. Paradoxically, there has never been a better time to invest in startups than now, when valuations have dropped. Moreover, there has never been a better time to invest in venture capital funds than now. Vintages that rise from turbulent markets and lower valuations have particularly good returns over the next 5 to 10 years.
Which investment themes were more successful in the last six months? What are the future themes?
“We focus on next-generation artificial intelligence frameworks, smart process automation and blockchain technologies. We invest in startups that are customizing these foundational technologies to digitize the financial services industry. We pay particular attention to the future of assets, how assets will be issued, what will happen prior to the issue, at issuance and post issuance. We also focus on data and how it can be protected, shared, monetized within the industry.”