Introduction and Main Investment Themes
Parmenion Soparfi (société de participations financières) is an investment company based in Luxembourg. Parmenion is investing globally in companies that are already focusing on at least one of the following key themes in their ongoing development:
- ‘New Finance’,
- ‘Changing World’ and
Our global sector focus is first and foremost the financial services industry, but we are also interested and investing in adjacent growth stories in other sectors (e.g. related professional services, the media sector, ICT, education etc.). Geographically-speaking we invest globally, with ‘New Finance’ often translating into developed country holdings and ‘Changing World’ triggering our interest in emerging and frontier markets countries.
We believe that changes in regulation, technology, client perception and new products/strategies will have a major impact on the financial services industry in the years to come. The Googles and Amazons of this world could be threatening the dominant position of major banks, with crowdfunding and even the rise of new money (e.g. bitcoins, loyalty programs etc.) challenging those banks even further. Passive investing and the possibilities of “Post-Modern-Portfolio-Theory” quantitative investing and innovative hedge fund strategies will have a big impact on the asset management sub-sector as well. Changes in the insurance and investment banking subsectors can also be expected.
Changes in the relative importance of countries, with emerging and frontier markets countries growing relatively faster than developed nations, are also a factor to reckon with. Last but not least, ethical and sustainable investment strategies are gaining traction not just in the portfolios of Western investors (institutional and even private) but also in emerging and frontier markets countries. The United Nations Principles for Responsible Investment (UN-PRI) are now not just embraced by so-called ESG-investors in their portfolio and direct investment strategies, but there is also growing awareness that Islamic Finance and Shariah-Compliant investing are basically closely related to this new approach.
Cash plus Added Value
Mind you, Parmenion is not just a monetary investor. So if you don’t believe in any way in the themes described above, then we won’t be the right partner. But if you are looking for an investor that will bring you added value through active involvement with senior level human capital, an extensive global network and proven quantitative systems (i.e. our Investment and Risk Management Concept), we might be an interesting choice for you.
Strategic Partnership Model
We are not a private equity firm or venture capitalist. Our prime focus is on strategic partnerships and ‘internalized’ earnings and value growth within Parmenion Group. We do not focus on ‘exits’ after e.g. 5-7 years. Our favourite investment formats are equity stakes of 10 to 50 percent in companies that either comply with our main investment themes, strengthen our global group reach and/or generate synergies with other group entities. Obviously, we need to be convinced of bringing added value to the new addition in our strategic portfolio.
Other ways of collaboration: Revenue Split for Joint Products
Are you looking more for a business partner than a (co-) investor? Parmenion and its group companies can also work based on a fee split for existing or newly created joint products as long as they fit our basic ‘themes’.
Direct and Portfolio Investments
Parmenion Group and its partners are involved in direct investments, but we will also (sub-)advise on portfolio investments. These investments (either via funds or segregated mandates in close collaboration with licensed Fund Managers in major financial markets) are based on our proprietary Investment Concept and Risk Budgeting System.
Over the last 20 years versions of the Concept were used to manage (or advise on) institutional and family office investment portfolios with a total value of almost USD 10 billion.