60-second interview with Khaled Said, founding partner, Capital Generation Partners
Tell me about your role at Capital Generation Partners.
I am one of the three founding partners of CapGen and have been the managing partner of the firm since we were established in London in 2007.
How has the private client industry changed over the last ten years?
The industry has become more concerned with regulation, transparency and compliance over the last ten years. As an investment manager it is our job to accommodate these new requirements but to remain focused on investment outcomes of each client.
How does your own experience as an investor help your client work?
It ensures that the firm’s activities are aligned with the needs of our clients. We are independent of the investment industry and don’t have any in-house products to sell which means we assess each investment idea based on its own merits and its suitability for each client. I chair the Client Portfolio Committee and act as the sole client representative.
Can you tell us about interesting client stories?
In the context of asset allocation the most interesting client trend has been the significant shift towards the more illiquid end of the investment spectrum. Clients have expanded their investment horizons to look at owning commercial real estate directly and in new regions away from their home turf, and also investing directly in operating businesses. Recently, one of our clients spotted a Spanish business he wanted to buy from another family he knew, he started talking to another of our clients in passing about the project and in the end they bought it jointly. Our team did the due diligence and the transaction on the acquisition for them both.
Will the UK benefit from Brexit?
In a word, no.
What are the main challenges your clients face?
Clients are looking for the right balance between performance, volatility and liquidity in an environment of high valuations and low returns. Clients, given their scale and sophistication also need us to fit in with their infrastructure rather than the other way around. It has become one of the key selling points of working with CapGen; that clients do not have to fit in with us.
Tell me about an achievement you are most proud of?
I am proud of how CapGen has got to the stage we are now of working with multiple families from several different countries. It shows me how far we have come from working in-house for one family in Geneva fifteen years ago. We have a team of thirty-four people and a high tech operation which has delivered excellent results for clients over multiple years.
What trends do you see?
There is a growing trend towards direct investing for private clients in real estate and operating businesses, both at home and abroad.
How do you relax after a long day?
We are big foodies in my household and we enjoy cooking with the kids.They are still quite little, but they make a mean pizza.