Hidden champions yield profits beyond traditional stock market avenues, the stock market represents only 1% of the expansive investment spectrum. Many market and technology leaders don’t start off as publicly traded entities. They function independently from daily market fluctuations, securing notable growth discreetly.

Confining investments solely to the stock market restricts one to only a fraction of the economy. Instead, access to the hidden champions within medium-sized companies is gained through involvement in the private equity investment class.

Private equity represents investments in thriving medium-sized companies that are not currently listed on the stock exchange.

This asset class supports established companies in establishing, expanding, or transforming, contributing to job creation and serving as a crucial growth engine for any economy.

Throughout various market cycles and crisis periods, private equity has historically yielded returns above the average. It functions as a stabilizing force for the overall portfolio and provides protection against inflation.

Institutional investors like insurance companies, pension funds, and foundations are attentive to the expansion of companies beyond the stock market.

Wealthy German families, including the Quandts (BMW), Opel, Oetker, and Schwarzkopf, also engage in private equity investments through family offices, which manage the assets of affluent families.

Family Office

AVERAGE ASSET ALLOCATION OF FAMILY OFFICES – Source: Goldman Sachs, 2023: Family Office Investment Insights (total may differ from 100% due to rounding)