In a recent fireside chat, Julien Zornig, Managing Partner at Astorius Capital, shared his insights on making private markets more transparent. The discussion, hosted by Giovanni Amodeo, covered several key topics:

Background and Career Journey: Julien Zornig began by outlining his European roots and career trajectory, which includes significant experience in private banking and alternative investments. He highlighted his focus on hedge funds and private equity, particularly within the German-speaking market.

Founding Astorius Capital: Zornig discussed the founding of Astorius Capital 12 years ago, driven by the need to better serve clients with alternative investments, especially private equity. He emphasized the firm’s mission to improve the investment landscape in Germany by offering options that were previously unavailable or unpopular.

Challenges in the German Market: The conversation delved into the historical challenges of the German closed-end fund landscape, dominated by investments in ships, real estate, and windmills, with little focus on private equity. Zornig explained the regulatory and perception barriers that hindered private equity’s growth among private clients.

Evolution of Private Markets: Zornig noted a significant shift in the perception and allocation to private markets over the past decade. He argued that private markets are becoming the new public markets, citing a decrease in the number of listed companies and a substantial increase in private equity-held companies.

Client Education and Persuasion: The discussion highlighted the importance of educating clients about the benefits of private equity. Zornig shared how Astorius Capital has built trust with clients by demonstrating stable returns and successful exits, contrasting this with the less favorable performance of traditional asset classes like real estate.

Differentiation and Specialization: Zornig emphasized Astorius Capital’s focus on smaller buyout funds and the operational improvements they bring to companies. He explained how this approach differentiates them from larger, more impersonal asset-gathering firms.

Future of Private Equity: The chat concluded with Zornig’s thoughts on the future of private equity, the importance of maintaining a personalized approach, and the potential risks and opportunities in the market. He stressed the need for specialization and the value of co-investments in enhancing client relationships.

Key Takeaways:

• Transparency and Education: Essential for client trust and market growth.
• Private as the New Public: Reflecting the shift in investment trends.
• Specialization: Smaller, focused funds offer unique opportunities.
• Client-Centric Approach: Personalized service remains crucial.

Julien Zornig’s insights provide a comprehensive look at the evolving landscape of private markets and the strategies Astorius Capital employs to navigate and shape this dynamic field.

Key timestamps:

00:09 Introduction to the Fireside Chats
05:31 The Shift from Public to Private Markets
06:57 Changing Perceptions of Private Equity
08:25 Differentiating Investment Products
10:43 Specialization in Private Equity
12:50 The Importance of Personalization
15:12 The Role of Co-Investments
18:18 Astorius: A Unique Investment Approach
20:54 Inefficiencies in German Investment Portfolios
21:58 The Shift from Fixed Income Investments
22:42 Market Opportunities and Risks
23:21 Specialization in Private Equity Firms
24:57 Talent Acquisition and Development
26:10 Conclusion and Closing Remarks