BTM Capital is one of the world’s highest ranking and most trusted wealth management firms among experienced private investors globally. Our diverse and highly experienced team of portfolio managers apply advanced techniques and principles in evaluating new opportunities as well as risk management.
While most investment firms seek merely to beat the market we focus on greatly exceeding the returns the average retail investor acting on their own could ever hope for. BTM Capital has created a team of leading portfolio managers, all successful in their own right, to contribute to a vision and direction not easily obtained by investors acting on their own.
BTM Capital understands the strengths and weaknesses of each asset class and financial instrument as times change and market conditions fluctuate. We work hard to ensure your money is being utilized as effectively as possible in order to meet your own unique financial goals.
Founded in 1996, BTM Capital has developed an impressive track record of consistently beating the yearly returns of the S&P 500 and the Dow Jones Industrial Average, as well as the published returns of the top 10 global hedge funds ranked by AUM (assets under management), and the top 100 most popular ETFs from major issuers such as Vanguard, Proshares, Invesco, and Schwab.
The expression Private Equity defines an asset class where the shares are not publicly traded on a stock exchange, so not public but Private Equity shares. To allow our potential investment partners, including private individuals, to feel confident about this form of investment we outline our approaches here. Private equity investments will most often be made by private equity firms although there may be venture capital firms or even angel investors involved occasionally.
Investors may have different approaches but ultimately they all offer working capital to an operating company.
This infusion of capital will be used to:
develop new products,
restructure the company’s operations and management,
or even to change its ownership
The details of the application of the funds will depend upon the strength of the operating company and its predicted future.
Many of our senior staff were involved in the heady days of Leveraged Buyouts in the 1980s. They do, privately, agree that Private Equity is the successor to this approach but fortunately it is much less frenetic now. The main differences are the tighter control of leveraged funds and the segregation of investment funds within Private Equity firms these days.
There are a number of common investment strategies that private equity firms use, such as:
If the transaction is any form of buyout the private equity firm will normally buy a majority stake in an existing, mature firm. This is distinct from a venture capital or growth capital investment, where the investor takes a small stake in a young or emerging company and rarely obtains majority control.
Private equity is sometimes grouped into the broader category of private capital. This is commonly used to describe capital that is invested to support any long-term, illiquidinvestment strategy. It is illiquid because the shares cannot be traded until after the successful impact of the investment. The investor can then expect a healthy return after a subsequent Public Offering or merger.
BTM Capital normally acts as the financial sponsor of an acquisition transaction. This means we provide 30 to 40% of the capital and raise the rest as acquisition debt for this particular project. We also source a proportion of the 30 to 40% from partners and investors whom we represent, through a specific Fund where they are invested. This is where private individuals would also become involved. The providers of the acquisition debt would not have recourse to us or claims on our other investments so we are in a comfortable position. We only provide a fraction of the capital yet we benefit from leveraging this up to the total acquisition amount and then receiving increased returns on exit.
Growth and Mezzanine Capital is often used for minority investment into a mature company. It allows the company to secure working capital and also to share risk with a partner rather than having to seek bank loans which may not be easy to procure or service.
INITIAL PUBLIC OFFERINGS
When a client or potential client company is ready to consider a listing on a public market, we will suggest the creation of a more detailed offer.
Obviously, if they are already private equity clients of ours, then this will be a relatively process. Either way, this will prompt creation of a prospectus, after which then the scheduling of a series of legal and financial milestones meetings will be of paramount importance.
An IPO is certainly that first taste of the real market value of your company.
It can be very exciting, but it has to be preceded by many months of work. If the offering eventually goes well, it will be exciting for owners, established investors, and newcomers.
On some occasions, we may have access to pre-IPO, privately held shares in the IPO Company. If so, we may be able to offer some of them to our potential investors as an introduction to working with us. These will normally be available only a few days or weeks before the IPO and represent a good, short-term investment. For this type of investment, the exit strategy will be a sale either at the time of the IPO or a number of months later. This will be fired once any upside has been realized, after a short-term hold.
BTM Capital provides the best advice on your fund portfolio by identifying the right sectors and markets that offer the most upside portential against the associated risk under current market conditions.
An investment fund is a type of collective investment scheme under which all fund participants invest money together. Investment funds are established and managed by investment fund management companies. Funds manage the assets of many investors and invest them in securities, such as equity shares, bonds, treasury bills and other financial instruments.
Unlike bank deposits with a fixed interest rate, the return on investments in an investment fund is neither known in advance nor guaranteed. It is not based on interest income but on the change in the value of securities and other assets in which the funds invest. The higher the increase in the value of securities, the higher the return. The value of investments can be checked on an ongoing basis by tracking the value of participation units of respective funds.
When the risk acceptability level is high, investors may take into consideration more volatile investments which, however, may bring higher returns e.g. equity sub-funds. When the risk acceptability level is low, it is better to invest in sub-funds with limited volatility, even if the return on them is lower.
MERGERS & ACQUISITIONS
Beyond the IPO, it is very likely that the management team will, initially, think that organic growth is sufficient to sustain success.
This should be the case because the whole company’s recovery is sufficient for medium-term success. Despite this, the next step could still be a merger or acquisition.
Our question will be whether it is a merger of equals, of if you are acquiring a competitor or are a target for acquisition.
All these scenarios will certainly bring you in touch with investment markets again.
We will again be ready, with our international experience, to review at least two companies and a general approach.
Then, we will use our guide again to help you with handling the dynamic new situations you are facing. Mergers and acquisitions are a major component of business for all parts of our partnership, so we will certainly be well placed to ensure you enjoy a beneficial outcome.
ACCOUNTING & TAXATION
Company name works as accounting, tax, and financial consultants to our investment clients and others.
We work for our clients as their key resource and operation team, responding to changing economic environments.
We help to adapt their plans to meet their evolving needs in the short, medium, and long term. Similarly, our tax services practice aims to reflect the needs of each and every client. At one moment, we may be dealing with the tax aspects of cross-border acquisitions, while next, it might be engaged in the development and implementation of global transfer-pricing strategies. We assist our clients in achieving effective tax compliance, managing their tax risks, yet also helping to control costs.