
cincodias.elpais.com
Schroders Capital's Private Equity Strategy Amidst Market Volatility
Mario García Ribeiro of Schroders Capital (€95.9 billion AUM) discusses their lower mid-market investment strategy focused on high-quality companies in healthcare, technology, and business services, noting increased retail investor interest in private equity due to lower volatility and recent regulatory changes in Spain.
- What is Schroders Capital's investment strategy and how does it respond to market volatility?
- Schroders Capital, managing €95.9 billion in private markets, focuses on the lower mid-market (companies valued around €500 million) due to more attractive valuations and inefficiency. They target high-quality companies with EBITDA margins exceeding 20% and strong cash generation.
- How does Schroders Capital create value in its portfolio companies, and what types of investment vehicles does it utilize?
- Schroders Capital's strategy involves professionalizing portfolio companies, expanding into new regions, and supporting acquisitions. This approach, consistent for 20 years, aims to generate growth and returns for investors regardless of economic cycles. The firm utilizes closed-end funds for institutional investors and semi-liquid funds for others, launched in 2019, with lower entry points.
- What are the long-term prospects for Schroders Capital's sector, and how does the current economic uncertainty impact its investment approach?
- Schroders Capital's focus on healthcare, technology, and business services (75% of their portfolio) reflects a preference for locally focused companies less affected by tariffs. The firm's long-term outlook is positive due to the significant growth of the private market and increased retail investor interest, particularly in Spain since regulatory changes lowered minimum investment amounts.
Cognitive Concepts
Framing Bias
The article frames private equity investments in a very positive light, emphasizing the potential for high returns and diversification benefits. The potential downsides are mentioned but not given equal weight. The structure of the questions and answers also reinforces this positive framing.
Language Bias
The language used is generally neutral and objective. However, phrases such as "very attractive valuations" and "much more inefficient" could be interpreted as slightly subjective. More neutral alternatives could be "competitive valuations" and "less efficient.
Bias by Omission
The article focuses on the perspective of Mario García Ribeiro, head of private market investments at Schroders Capital. Other perspectives, such as those of competitors or regulators, are absent. While this is understandable given the focus on a specific company and its strategies, the lack of alternative viewpoints limits a fully comprehensive understanding of the private equity market.
False Dichotomy
The article presents a somewhat simplistic view of private equity versus public markets, highlighting the lower volatility and potentially higher returns of private equity without fully exploring the complexities and risks involved, such as illiquidity and lack of transparency.
Sustainable Development Goals
The article discusses private equity investments, which stimulate economic growth by providing capital to companies, fostering job creation, and boosting overall economic activity. The focus on lower mid-market companies and strategies to improve their efficiency and expansion contribute to job creation and economic development. The mention of increased investor interest also points to a positive impact on economic growth.