+++Prime Capital saw dynamic growth in 2018 with Assets under Management rising to EUR 14.7 Billion+++
− Assets under Management up 40 percent to EUR 14.7 billion
− Successful diversification though five dynamically growing business units
− New structure solidifies growth potential, positive outlook for 2019
Frankfurt, February 19, 2019
Prime Capital saw dynamic growth in 2018 with Assets under Management rising to EUR 14.7 billion (2017: 10.4 billion), an increase of 41 percent. For the independent asset manager and financial services provider headquartered in Frankfurt this was the 12th consecutive growth year.
“We have successfully grown Prime Capital into a diversified alternative investment company”, says Werner Goricki, CIO Prime Capital AG presenting the results. “In the ongoing low interest environment demand for all our alternative products has steadily increased”, he added. “We have responded to this expansion of our business by installing a new management structure.”
Prime Capital has established five diversified business units, all of which experienced sizable inflows of capital.
Absolute Return focusses on hedge fund management as well as personalized hedge fund advisory mandates. This was originally the investment manager’s core business. In 2018 the offering in this segment was expanded by the new PCAM Select fund, a multi strategy fund of hedge funds.
The Private Debt segment which offers secured and unsecured investments with attractive returns such as infrastructure projects and aircraft finance, was further broadened in 2018. Prime Capital won several mandates amounting to a total sum in the three digit million Euro range. Examples are corporate debt financings and real estate mezzanine strategies. The latter enable investors to invest in financing secured by real estate. The mandates have been won in exclusive partnership with Lenwood Capital, a real estate debt investment and asset management firm.
2018 was also a successful year for the infrastructure team which acquired Project Posio in October, an on-shore wind park in Finland, and Project Tuuli in June, an operative wind park supplying Finnish customers. Total capacities of all wind parks in Scandinavia acquired by Prime Capital amount to 1.03 GW/h in renewable energy, supplying a total of 70,000 households with average consumption of 15,000 kWh p.a. The business unit also secured a first mandate for renewables mezzanine financing.
Outsourced Asset Management, which manages complete coverage stocks for institutional clients such as live insurers and pension funds, was a main driver of growth in 2018. Prime Capital took on further such outsourcing mandates with several billion Euros in assets, covering the complete investment process from strategic asset allocation, portfolio structuring, manager selection to portfolio implementation and monitoring.
Serving all business units is Access Solutions, which structures fund and securitisation solutions for Prime Capital as well as third parties covering a broad range of investor profiles (regulated and tax exempted investors, family offices, etc.) as well as asset classes (hedge funds, credit funds, infrastructure debt or private equity). Prime Capital is a leader in the structuring of alternative assets.
The expansion of Prime Capital’s business increased the need for qualified staff, approx. 10 additional people were hired in 2018 and a further expansion of the team is planned. As of December 31, 2018 a total of 85 professionals worked at Prime Capital. The leadership structure also was updated to serve the needs of a growing organisation: Manfred Beinhauer joined the Executive Board as CRO/COO and Marco Gerlach was promoted to CFO. He was previously head of finance. They are replacing John Staddon, Raj Puri and Thomas Keller, who have left the company.
“We have put in place a new structure to effectively and efficiently manage our new size. The heads of our five business units are now part of the extended management team”, says Andreas Kalusche, board member and Head of the Client Solutions Team. “With this new structure we are well set for further growth as well as the long-term strategic development of our company”, he adds.
“It has always been my goal to put Prime Capital on a strong footing and prepare it for the next generation”, said Wolfgang Stolz, founder and CEO of Prime Capital. “With our new structure and additional resources, we are very confident to generate further growth again in all our business segments in 2019”, he added.
About Prime Capital
Prime Capital AG is an independent asset management firm and financial services provider, focusing on institutional clients. The company specializes in Alternative Investments, in particular in Absolute Return, Infrastructure Investments and Private Debt. Prime Capital was founded in 2006, currently employs more than 85 people in Frankfurt, Luxembourg and London and is regulated by BaFin and CSSF.
For additional information, quotes or requests please contact:
Prime Capital AG
Andreas Kalusche, member of the board
Tel: 0049 69 9686 984 36