HIH Invest increases volume of multi-manager business mandates by four billion euros to over ten billion euros
HIH Invest Real Estate (HIH Invest) has once again increased the growth rate of its Multi Manager Business (MMB) division with its funds of funds, master funds and bundling solutions. In the second quarter of 2023, the division gained investors with mandates totalling around four billion euros as new customers. This brings HIH Invest’s Multi Manager Business segment to over 10 billion euros.
“Institutional investors are faced with the task of weatherproofing their investments in real estate and other alternatives at the end of the low-interest phase. The focus here is on the stability of the portfolios. We can serve this need with our Multi Manager Business. For example, we can balance out appreciation and depreciation effects in the portfolios or create or dissolve hidden reserves in a targeted manner. With fund-of-funds solutions, investors are also in a position to determine the amount and timing of distributions precisely and thus to control results. It is still the case that institutional investors want to use funds of funds, master funds and bundling solutions to reduce the administrative effort for their real estate and infrastructure investments as well as other alternatives and to outsource the increasingly extensive reporting obligations,” Alexander Eggert, Managing Director of HIH Invest, explains the high demand.
With the solutions of the Multi Manager Business division, institutional investors can bundle their entire capital investment consisting of real estate target funds, target funds of other asset classes such as renewable energies and infrastructure or even direct real estate portfolios according to individual needs and requirements. The master, fund of funds and bundling solutions can be combined with management and advisory services as in a modular system. The range of services extends from the development and review of the investment strategy, the portfolio and asset analysis of the entire portfolio, the preparation of comprehensive ESG reporting for funds of funds, the selection, review and subscription of target funds to the assumption of representation of interests in investment committees. The MMB offer is primarily aimed at pension funds, insurance companies, pension funds, savings banks and banks.
“According to our many years of experience and a large number of implemented mandates, institutional investors want to remain as flexible as possible when designing their vehicles. They need a range of services that can be adapted to different situations. Currently, in addition to the classic management services, there is a particular demand for portfolio analyses, stress tests or allocation advice,” reports Katharina Hopp, Head of Multi Manager Business at HIH Invest. “The comprehensive reporting services are also key for our clients. Review reports on the classic financial and regulatory topics are standard. At HIH Invest, a specially developed web-based tool, the Investment Cockpit, now also enables customisable evaluations with a wide range of analysis options.
