December 02, 2012

Multiplicity expands offering to include valuation services and AI strategy implementation

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Multiplicity Partners (“Multiplicity”), the Zurich-based specialist for alternative investments has broadened its service offering to include valuation services and advisory on alternative investment strategy implementation and product selection.

Roger Rüegg, partner at Multiplicity, explained: “Our typical mandate on illiquid assets covers many aspects of the alternative investment (AI) value chain – at various stages of a product’s life cycle.

Increasingly, clients are seeking advice on single elements of our offering in the hope to get the ball rolling internally.” An example for a specific mandate is the wish for an independent pricing of illiquid and impaired fund investments based on actually traded prices and market bids. Most investors lost faith in the official valuations due to the uncertain realization perspective and the fact that positions can rarely be exited at these levels in the secondary market. An unbiased valuation is an important first step when considering an exit or a review of the AI strategy.

Multiplicity is very experienced in liquidating impaired alternative investments and has developed the know-how, datasets and network to determine fair values that are based on actual transactions and bid/ask levels. Recent valuation mandates cover assets such as hedge fund side pockets, impaired credit and real estate funds as well as timberland investments.

While Multiplicity is known for its illiquid asset services, it has always been a sparring partner for its clients on alternative investments in a broader sense. Clients asked Multiplicity to give an opinion on effective structures, reputation of providers or products they came across. Andres Hefti, partner at the firm, commented on the strategy implementation and product selection offering: “For the past two years Multiplicity has been advising a Swiss wealth manager with an asset base in excess of CHF 1 billion on an exclusive basis on their alternative investments. The mandate comprises identifying the most promising strategies, screening the landscape for suitable products and performing fund and manager due diligence.” Going forward, Multiplicity will offer these services to a broader audience and help them selecting the most promising, cost-efficient alternative investment products suitable to their specific requirements. The team at Multiplicity has been active in the alternative investment industry for more than 10 years and developed, implemented and managed hedge funds, fund-of-hedge funds, structured products as well as client-specific mandates.”