Benefin manages both proprietary and client investment portfolios. We cover and invest in sectors where we have chances to achieve higher alpha or returns that are not related to systematic risks.
Our investments are very selective, primarily in the markets we know well (e.g. London, Vienna, Sofia) and markets and segments that are subject to catch up trends. The real estate market is not efficient (from financial point of view), hence trends form and develop and take some time to mature and fade. Just as an example, regarding Sofia we invest only in the very high-end residential segments. We have no exposures to vacation property. We currently limit and decrease our exposures to office property (all quality classes) as we perceive over supply on that segment and it will take some time for the stock to clear. As far as the rest of Bulgaria is concerned we are interested mainly in industrial properties in Sofia region, Bourgas and Plovdiv at key motor way locations.
We have made proprietary and client investments in a portfolio of mobile applications at their initial stage development that address important needs. The investments are high risk. The chance of success in 1 in 10, based on experience. The uncertainty involved stems mainly from two sources: (1) market acceptance, and (2) specific risk. Benefin also maintains exposures to Internet-based platforms aimed primarily at winning business from and thus disrupting established traditional industries. Our chance of success is 1 to 5 in this asset class. Due to its risk profile IT investments represent a small part of our clients’ and proprietary portfolios, as any expected value gains are based primarily on growth.
Hi-Tech and Innovation Start-ups
Our portfolio consists primarily of investments in innovative materials, new production technologies, devices and systems aimed at segments with high growth potential. We partner with leading universities in the field of chemistry, machine technology, electronic equipment and technologies and computer systems. Our investments are at the stages of incubation, first and second round of investment. The main outcome we look for is a profitable exit by disposal to a strategic partner that is capable for providing a springboard for global growth.
The investments we manage are mainly perennials that benefit from subsidies under EU programs. The risk is low, the returns can not fall below the levels guaranteed by subsidies. Key issues in these operations is the identification and acquisition of suitable land and recruitment of appropriate human resources. All the risks associated with loss of crops are normally covered insurance.
Health and social services
We invest in operations providing health and social services in Bulgaria, but focused mainly on foreign elderly people. The main driving factor is the lower cost of delivery, and hence the competitive prices compared to the developed and mature other EU members state markets. The return is attractive and long-term. Uncertainty in the early stages is high and arises mainly from the success in building a critical mass of resident clients. After bringing a given facility in operation the risk decreases significantly.
For more information contact us on +359899966858 or send us a message on firstname.lastname@example.org, to schedule an appointment and discuss topics that interest you.