The unlisted market attracts more and more savers looking for diversification and potential return higher than traditional investments. But this universe, less liquid and more complex than listed markets, requires a good understanding of where the money is placed, for how long and under what conditions it can be used. Before signing, the role of the wealth management advisor (CGP) is therefore central.
You still have to ask him the right questions. Because a good sales pitch is not enough. The investor must obtain precise answers on the blocking period, the risk profile, the experience of the management team or even the real place of the unlisted in its overall allocation. Here are five simple questions to put on the table before getting started.
What happens if I need to get my money back before the due date?
The first reflex must be to liquidity. In the unlisted sector, the money is often blocked for several years, with limited exit possibilities. “The first question to ask is very simple: ‘What happens if I need to get my money back before the maturity date?’ Unlisted, by construction, immobilizes capital over several years and too many investors discover exit constraints when they need them most”underlines Benjamin Prod’homme, managing partner of Cézembre Capital.
How long has the management team been in existence?
Beyond the promise of performance, we must question the solidity of the manager. “A question too often overlooked: “How long has this management team existed and what is its history over previous cycles?” A quality track record is not just a performance figure displayed on a brochure: we must look at the regularity of results fund after fund, the stability of the team in place and its ability to generate performance, both in favorable phases and in more difficult phases.recalls Benjamin Prod’homme.
What are the costs, the real risk and the place of this product in my assets?
Three other questions must complete the exchange with the CGP: how much it really costs and what part of the heritage to devote to it. Entry, management or performance fees can eat into the final return and must be detailed in black and white.
Finally, the unlisted must not become a disproportionate bet: ask the advisor how this investment fits into a diversified and coherent strategy with the investment horizon and the need for security.
