Investing in private markets

Diversification through Private Markets

At BBVA we offer innovative alternative investment solutions adapted to different market environments and within a global wealth planning framework.

Investing in private markets, also known as illiquid alternative investing, involves investing in assets that are not publicly traded. Unlike public markets, these investments are usually structured through specialized funds and have a long-term investment horizon.

BBVA Open to Partners Group Private Markets IX, FIL

Learn about the first Spanish multi-strategy open-end fund in private markets

This evergreen alternative investment fund provides Private Banking clients with ongoing access to a global, diversified portfolio of investments in private markets.

The fund is managed through a partnership between BBVA Asset Management and Partners Group, an investment manager specializing in private markets with over 20 years of experience.

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Get access to alternative investments in:

Private Equity

Investment in unlisted companies.
Private debt

Direct financing for businesses.
Infrastructures

Investing in projects such as energy, transport or telecommunications.
Real estate assets

Investing in real estate such as offices, housing or logistics.

Incorporating private markets into a portfolio can provide:

Diversification

Illiquid alternative assets have historically shown lower correlation with listed markets, which can help to diversify a portfolio.

Long-term profitability potential

Investments in private equity and private debt aim to generate returns that offset the lower liquidity of these investment vehicles

Alignment of interests

In many cases, there is a strong alignment between fund managers, management teams, and investors.

Access to exclusive opportunities

It allows you to invest in companies during their growth phases, corporate transactions, or structured financing outside the public market.

Characteristics of illiquid alternative investments

Long-term investment.
Lower liquidity compared to listed assets.
Specific investment requirements. Minimum capital and limits on financial assets.

Investment structures: Closed-end Fund vs. open-ended or evergreen fund

Closed-end fund

- Limited investment period, usually between 6 and 10 years.

- They do not allow refunds during the life of the fund, only when divestments occur. The fund has a defined duration from the beginning.

Open-ended (evergreen) fund

- Allows periodic subscriptions and redemptions, under certain conditions and subject to certain fund liquidity conditions.

- No fixed expiration date.

- Facilitates continued access to private markets.

The evergreen fund model is gaining traction as a vehicle for integrating private equity investments into a long-term wealth management strategy.

How we invest in private markets

Through our asset manager, BBVA Asset Management, we have experience in managing private markets funds. We invest through a fund-of-funds model, which allows us to access different specialized funds managed by leading asset managers. Thanks to this approach, we apply a selection and diversification process that includes:

Different ways of investing: acquisitions, growth, debt and infrastructure.
Different investment types: investment in established companies, growth companies, corporate financing and infrastructure.
Geographical diversification: investment across different regions and markets to reduce dependence on a single economy.
Investment at different stages of the economic cycle.
Selection of specialized managers: with the help of the BBVA Quality Funds team, which analyzes, compares and proposes funds thanks to its solid selection method.

The fund-of-funds structure allows us to build diversified global portfolios that are balanced in terms of risk-return.