The Disruption of Investing: Family Offices and Konzortia Hub
If you’re an investor, these are exciting times! Once there were the first whispers of the internet. Now, the investing world is on the verge of its own disruption. If you care about investing, at the very least remember these keywords:
- Private Capital Markets
- Family Offices
- $84 trillion generational wealth transfer
- Artificial Intelligence (AI)
- Konzortia Hub
Private Markets: Higher Returns & Long-term Growth
To be blunt, if you want a really safe investment you put your money in a company that already generated the majority of its value. But what’s the point? You’re not going to see a meaningful return, might as well just open a CD.
Public markets aren’t the place to maximize your returns.
Here’s the truth, companies are staying private longer. According to Nasdaq:
- In 1980, the median age of a company at its IPO was 6 years, whereas in 2021, the median age was 11.
- In 1980, the median market value of a company at its IPO (adjusted for inflation) was $105 million. In 2021, the median market value was $1.33 billion.
- From 1980 to 2000, there were more than 6,500 IPOs. From 2001 to 2022, there have been fewer than 3,000.
(Source: Nasdaq.com)
Additionally, public companies are under pressure to meet short-term financial targets, like quarterly earnings reports, to satisfy shareholders and maintain stock prices. This focus on short-term results can hinder long-term strategy. This is why investors who are interested in a long-term partnership, like family offices, private markets are where you find those companies.
Now just because investing in Private Markets has more potential, it doesn’t mean it’s easy. Here are some of the challenges to overcome:
- Limited Access: Many private market opportunities are restricted to those with connections in exclusive networks.
- Lack of Transparency: Private companies often provide less financial disclosure, making it harder to assess risks and performance.
- Valuation Difficulties: Determining the true value of private companies can be complex due to the absence of public market pricing.
- Illiquidity: Investments in private companies are less liquid, making it difficult to exit positions quickly.
We are working on solutions to solve all these issues with our platforms Konzortia Hub and Konzortia Markets.
I’ll elaborate on these products later on, but first I want to mention the investor group that I believe will shake up the investing world the most: family offices. Especially the ones that decide to use Konzortia Hub!
Family Offices: Surpassing Hedge Funds and Transferring the Largest Amount of Wealth
According to Deloitte, the estimated combined wealth of family offices is $5.5 trillion (Source: Deloitte.com) whereas assets managed by hedge funds worldwide is just over $5 trillion (Source: Statista.com). Their wealth is also projected to grow at an exponential pace, surpassing $9 trillion by 2030.
With these growing assets at their disposal, more family offices are cutting out the middlemen and making direct investments. Last year, 62% of family offices made at least six direct investments (Source: CNBC.com).
We are likely to witness even more investing as the largest transfer of wealth is set to take place. The anticipated $84 trillion wealth transfer by 2045 from Baby Boomer households to younger generations (Source: Cerulli.com). This shift will likely increase demand for more modern, tech-savvy solutions, and socially responsible investments. Which means more players entering the private market arena.
Family offices, unlike hedge funds and private equity firms, are free from the burden of justifying fees. Which allows them to focus on long-term, strategic investments. Without the pressure of short-term performance metrics, they can take calculated risks to make impactful decisions that shape global markets.
However, family offices typically lack the infrastructure and resources of professional investing firms. They are usually led by an entrepreneur who found success in a specific industry. That success doesn’t always translate to investing expertise. If family offices are going to make the most of their capital, they need tools to help them to invest in the private markets. This is where Konzortia Hub comes in.
Konzortia Hub: The AI-powered Investing Platform
We are building an AI-powered platform designed to give family offices and all investors an edge in the private markets. This technology empowers you to source, evaluate, and execute deals faster and more efficiently than ever before.
How It Works
- Personalized Investment Criteria: Start by creating a custom profile based on the investment filters that matter most to you — industry, location, revenue type, valuation, and more.
- Automated Deal Sourcing: Our Smart Recommendation Engine uses cutting-edge AI algorithms to search our extensive, real-time database of private companies, matching your criteria with those of the companies for the best alignment.
- Data-Driven Evaluation: When it comes to evaluating a deal, Konzortia Hub uses industry data, benchmarking tools, and AI-driven analysis. What would normally take weeks for a team of analysts, our AI can do in minutes — transforming textual data into actionable insights.
- Seamless Deal Execution: From contract signing to disbursing funds, Konzortia Hub streamlines every step of the deal-making process. Our decentralized database ensures transparency, reduces fraud risks, and boosts efficiency.
We have the perfect companion platform planned as well. Liquidity is another major issue in private markets since there isn’t a major secondary market available to sell your equity. That will all change:
Konzortia Markets: A secondary market for quick, secure transactions,
allowing smooth investor exits. This enables the trading of digitized assets, providing liquidity options from the early stages of a deal. This feature sets us apart by offering a complete end-to-end solution in the private capital markets.
Conclusion
As family offices continue to rise, managing vast wealth and navigating a changing investment landscape, tools like Konzortia Hub offer the technological edge needed to thrive in private markets. By leveraging AI-driven insights, personalized deal sourcing, and seamless execution, family offices can capitalize on exclusive opportunities while minimizing traditional challenges. With the upcoming $84 trillion wealth transfer, the demand for sophisticated, tech-savvy investment platforms will only grow. Konzortia Hub is poised to lead this disruption, empowering family offices to drive lasting, impactful investments in the global market.
Are you part of a family office and interested in learning more about Konzortia Hub? Visit Konzortia Capital to learn all about our product and our Founder’s Circle. This is an exclusive opportunity for select investors like you to test the platform before it goes live!
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About Konzortia Capital
Konzortia Capital is a pioneering holding company and FinTech consortium dedicated to transforming the Private Capital Markets industry. We offer solutions for matching issuers with allocators, digitizing securities, and trading over-the-counter securities. We aim to create a more efficient, transparent, and accessible market for all stakeholders.
At the forefront of our innovative efforts is Konzortia Hub, our flagship product. Konzortia Hub is a game-changer, leveraging cutting-edge technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Distributed Ledger Technologies (DLT). Through Konzortia Hub, we are reshaping the landscape of deal sourcing, evaluation, and execution processes within Venture Capital, Private Equity, and Mergers and Acquisitions (M&As). This transformative approach ensures a more efficient, accurate, and dynamic investment process for all stakeholders, enhancing the potential for successful investments.
To learn more about investment opportunities with Konzortia Capital and explore becoming part of our cap table, follow this link.
