Titanbay launches co-investment programme

Alex Bozoglou, head of investments at Titanbay, told Unquote that the firm views the new programme as a "natural extension" of its existing fund investments business. "We are trying to bring institutional-quality portfolios to small- and mid-sized investors, with the best opportunities packaged in a thoughtful way," he said. "We have been working on this in the background for some time, setting up the structures and relationships, and we have a strong deal to inaugurate it."

Titanbay said in a press release that the programme's first live offer is a "take-private of a leading German provider of real estate financing solutions and services by two leading buyout firms."

Current take-privates underway in the German market include real estate financing bank Aareal Bank, with a consortium led by Advent International, Centerbridge and CPPIB leading the process. Bozoglou declined to comment on this.

"We will keep the aperture for the strategy wide and will see a lot of dealflow through partnerships with GPs and other dedicated providers of co-investment opportunities," Bozoglou said, adding that the firm expects to make 10-12 deals per year, diversified across geographies and whether the deals are more growth or value-based. "This will include some US deals, but the focus is mainly on Europe. It will be a truly global programme as it develops," he said. "For the moment we are focused mainly on PE, given the size of the market and the fact that we have just started."

There are various reasons why co-investments make sense as part of a diversified private markets portfolio, according to Bozoglou. "This sub-asset class is increasing in size and interest along with the PE asset class as a whole," he said. "Co-investments make sense due to their J-curve mitigation, the greater flexibility to control what your portfolio looks like, and a more concentrated position with higher return potential, plus the potential to look at it as a means to average down costs with a competitive fee structure."

Investors can participate in the co-investment programme with investment sizes comparable with the platform's fund investments, according to the press release.

Launched in 2020, Titanbay partners with wealth managers and private banks, aiming to provide them with access to a diversified programme of private markets funds that they can offer to their clients. The platform acts as a single institutional LP for the GPs in whose funds it invests.

Titanbay announced its Series A round in May 2022, raising an undisclosed amount from Motive Partners, Abrdn and FNZ. In addition, the firm has a partnership with asset management firm Mercer, which it announced in August 2021.

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