DMW Finance Group Basel, Barcelona, Monaco
Alternative Investments
“Investment solutions for a low-interestrate, high-risk world”
Commercial Real Estate
Luxury Hotels / Office Buildings
Investment Banking
Private Equity, M&A, European Luxury Sector
Asset Management
Absolute Return Portfolios: Hedge Fund Portfolios Funds of Funds
Real Asset Investing
Art Funds Design & Management Art Investment Products: Art Bank
New for 2019: Diamond Funds
“We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win…” President John F. Kennedy “Moon Speech” September 12, 1962, at Rice University Houston, Texas
Profile / Growth / Milestones
2016 3rd Quarter
3 Billion+ Usd
Deal Database
Deal Activity in the United States, London, Geneva, Monaco
Over 160+ off-market and on-market hotel, office, casino and luxury residential properties
Client Geography
DB Geographic Footprint
New Business Lines
Market Research
New Products
Geneva, London, Monaco, Madrid / Barcelona, UAE, China
Technology
New cloud based portals for clients, Cloud Mobile based CRM for employees, Cloud based property DB to Marketing capability
Properties in 10 major cities including New York and Beverly Hills
Barcellona, New York, London, Paris. Sector Research: Swiss Luxury Sector
Client Development 10 Core Family Office / Institutional clients.
Investment Banking Luxury Sector 2016, DMW Lifestyle 2017
Art Bank, Art Auction Guarantee, Super Yacht Financing,
Events
New Alliances
Coming Soon!!
Fireside Chat, President Basel Comm on Banking Supervision ((BIS), Monaco Yacht Show
Polo Luxury Lifestyle Magazine, Quintessentially Lifestyle, Boutsen Design
a)
Favre - Capital Raise 10 Million Eur
b) Picasso Theme Art Fund
This year to date has witnessed rapid growth in business lines, clients, products, collaborators, technology & systems and important alliances.
Overall we observed a strong interest internationally in commercial real estate, in yield investments and in art investing.
The four main business lines have worked nicely together allowing clients to find benefits in multiple business lines at once.
DMW Finance Group Zurich, Monaco, Madrid
Contents 01 Who we are: Structure & Strategy 02 Business Lines: The DMW Collection
Real Estate Advisory
Investment Banking:
M&A & Private Equity for Swiss Luxury Sector
Hedgefund Advisory
03 Contact
01 Who We Are: Structure & Strategy Structure
Synergies
Reputation
Information
Asset Management Altis Investment Management, Zug Multi Asset Funds of Funds
AUM: 20 Billion Chf
Market Position
Scarcity
Leverage
Exclusivity
Private Banking Solution 23 Private Banking Relationships for Switzerland, UK, Liechtenstein,
DMW Finance Group: Alternative Investment Solutions for a low-interest-rate, high-risk world”
Investment Banking
DMW Finance Group enjoys a “competitive advantage” in the 4 business lines where it operates and hence valueadded to the client.
Network
ArtFund Advisory
The combination of firms allows for a broad strategic range of tangible asset and financial asset solutions
Know-How
Hedgefund Advisory
Is a strategy and advisory firm that combines inhouse knowledge and capabilities, and competitive advantages with key partnerships.
Advisory DMW Finance Group, Zurich Commercial Real Estate, Hedge Funds, Art Investment, Investment Banking / Private Equity
Real Estate Advisory
DMW Finance Group
Drivers of Competitive Advantage by Business Line
02 Business Lines: The DMW Collection
Investment Banking M&A
Commercial Real Estate Advisory
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Buy Side Advisory service to a core Family Office & Institutional client base.
Online database of 160+ off-market and on-market commercial real estate properties
Geographic Coverage: 10 European Major Cities & Beverly Hills, New York
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Swiss & French Luxury Sector Focus
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Swiss Watchmaking specialization
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Business Strategy & Valuation
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Road Shows & Capital Raising
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Market Research
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Sectors: - Swiss Watchmaking
- Beverages
- Jewels
- Supercars
Property search
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Market Research: New York, Paris, Barcelona, London
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- Fashion, Textile
- Disruptive Technology in the Fashion, Retail & Luxury
Deal Range: 18 min Euros to 2 Billion Euros. Total value of deal opportunities: +23 Billion Euros
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Structural advantages in Portfolio Construction
- Interior Design
- Football clubs
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New Capital Raise:
A. Favre & Fils (Watchmaking) 10 million Chf
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Critical Mass AUM and Advisory 20B/30B
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Pre Negotiated A/M contracts
3.
Big Data assisted analytics on the drivers of fund performance
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4.
Lower Cost Structure
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Full integration in the Cloud: Due diligence, Fund Manager Reports, Performance
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- Super Yachts
Deal Morphology: Hotels (3, 4, 5 Stars), Hotels + Casinos, Office Buildings, Retail & Shopping Malls, Development Projects, CoInvestment, Wineries, Supra Luxury Residential
Art Fund Investment
Hedge Fund / Asset Management Advisory
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Portfolio construction emphasizing non-correlated returns
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Monthly liquidity
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Options for manage, co-manage, white label products
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Cost Control
DMW Finance Group: Alternative Investment Solutions for a low-interest-rate, high-risk world”
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Art Funds: portfolio construction, capital raising
Focus: Due Diligence, Governance, Track Record, Specialist Teams by Genre
Fine Art Investment Products: Art Bank (lending/borrowing), Auction Guarantee
Theme Funds:
Exclusive opportunities to acquire fine art
Collaborative Agreements with Art Collectors, Curators, Brokers, Insurance Companies
New, coming soon:
The Picasso Opportunity, Art Theme Fund
DWW Real Estate Case Studies:
452 FIFTH AVENUE, New York
DORCHESTER COLLECTION, London
The market for Grade A office buildings in New York, Manhattan district is highly competitive. That being said we had a client interested in buying the HSBC building at a premium. The owner, an Israeli construction company, was not interested in selling.
Our client was interested in buying the entire chain of hotels managed by the Dorchester Collection, and owned by the sovereign wealth fund, the Brunei Investment Agency, the investment arm managing the wealth of the Sultan of Brunei. The challenge was to establish a productive dialogue and structure a deal beneficial to all parties.
Characteristics:
2016 was a vibrant year for commercial real estate in the major city centers. We saw strong client interest in New York, London, Geneva and Monaco. Some of the deals DMW Real Estate negotiated on behalf of clients can be found at right.
+ Grade A office building
+ Location: Manhattan
+ Square Feet: 871,000
+ Occupancy: 94%
+ Cap rate: 4-6% with uplift
Price: 1.02 Billion Usd
Characteristics:
+ 9 hotels owned and managed primarily in Europe but also Beverly Hills and Los Angeles
+ Total Rooms > 1300
+ Avg Occupancy > 80%
Price: 1.4 Billion Gbp
Le RICHEMOND, Geneva
5 TIMES SQUARE, New York
Local investor interest in the symbolic and luxurious 5 * hotel.
For a client interested in iconic properties in New York, we are working on the following building from the owner.
+ Number of rooms: 109, including 22 suites
+ Bar / Lounge/Meeting Rooms
+ Number of floors: 7
+ Business Centre, 7 conference rooms, 937 m2
+ Wellness / Le Spa by Sisley
+ Fitness
+ Gross Yield: 3.75%
Price: 250 Million Chf
+ 100% Occupancy, >1.0 Million Sq Feet
+ Average Lease Expiration Sep 2022
+ 80% Office, 20% Retail, Below market current retail rent, with potential to grow
+ NOI 2014 of 67.5 million Usd, 86 million Usd (expected 2018), 162 million (expected in 10yrs) as rents roll to market
+ Expected forward valuations of: 2.5 Billion Usd (2018) 3.2 Billion Usd (in 10yrs).
Price: 2.1 Billion Usd
DMW Finance Group: Alternative Investment Solutions for a low-interest-rate, high-risk world”
Real Estate Advisory
Geographic Coverage
Deal Radar 2016: O-market and on-market deals, map of opportunities by City (# deals)
DMW Finance Group: Alternative Investment Solutions for a low-interest-rate, high-risk world�
Real Estate Advisory
Geographic Coverage London
Geneva
Zurich
Madrid
Paris
Beverly Hills
New York
Washington DC
Chicago
DMW Finance Group: Alternative Investment Solutions for a low-interest-rate, high-risk world�
Ibiza
Barcelona
Monte Carlo
Canne
Real Estate Advisory
Publications: Sales Teaser
Property Data to Publication: Seamless in the Cloud New for 2016 at DWM Finance Group, Real Estate Division. Property Information is loaded into the database of properties and verified. This information is connected directly to our report creating application, which can produce up 30 specialized property types of information automatically from basic descriptions, maps and demographics to complex financial comparisons.
DMW Finance Group: Alternative Investment Solutions for a low-interest-rate, high-risk world�
Investment Banking M&A: Swiss Luxury Sector
“Individualized, Meticulous Project Preparation and Communication to a Wide Base of Investors” INVESTMENT BANKING
Summary The Investment Banking division provides an opportunity for small to medium sized firms in the luxury sector in Switzerland and France to access capital. DMW Finance Group, through its activities in large scale commercial real estate, asset management and capital raising for the luxury goods sector can provide a wide and based global client base as a source of capital. Particularly key is the careful understanding of the dynamics of the business in question and the detailed preparation of informative, well thought out, and attractive materials to showcase the financing project desired by the client. A wide and diverse client base of wealthy investors and investment institutions provides a convenient network for roadshows and carry out productive investment communication. - Swiss Watchmaking - Super Yachts - Beverages - Jewels - Supercars - Fashion, Textile - Design - Football clubs - Disruptive Technology in the Fashion, Retail & Luxury
DMW Finance Group: Alternative Investment Solutions for a low-interest-rate, high-risk world”
Investment Banking M&A: Swiss Luxury Sector
“Individualized, Meticulous Project Preparation and Communication to a Wide Base of Investors”
INVESTMENT BANKING Sample Deals Across Luxury
Glider High Tech Super Yachts: Financing
Dropel Natural Fabric Treatment: Series A Financing
A Favre & Fils Swiss Watchmaking: Capital Raise
Riviter Social Fashion Trend Intelligence: Series A Financing
Luvienz Supra Premium Champagne: Capital Raise
Metix Celebrity Beauty Secrets: Series A Financing
DMW Finance Group: Alternative Investment Solutions for a low-interest-rate, high-risk world”
Christophe Kaprelian Bespoke Men’s Suites: Capital Raise
L. Saha Sustainable Fashion: Series A Financing
“The Next Step, Super Luxury for the Modern Affluent”
A. Favre & Fils A Family Legacy Since 1718
Capital Raise 49% Equity Stake 10 Million Chf
DMW Investment Banking Division: Capital Raise Teaser 2017 November
DMW Finance Group Zurich, Monaco, Madrid
DMW Investment Banking Division: Swiss Luxury Sector
“The Next Step, Super Luxury for the Modern Affluent” A. Favre & Fils A Family Legacy Since 1718
A QUEST FOR THE ABSOLUTE
“Super Luxury for the Modern Affluent” 3 Layer Value Creation Zero Social & “Eco” Cost “Augmented Functionality” Super Premium Luxury
Type to enter textElaboration: DMW Finance Group
Phoenix 10.3
DMW Finance Group: Alternative Investment Solutions for a low-interest-rate, high-risk world”
Investment Banking M&A: Swiss Luxury Sector
“The Next Step, Super Luxury for the Modern Affluent” A. Favre & Fils A Family Legacy Since 1718
INVESTMENT THESIS
Summary The Swiss watch industry represents the Gold Standard in the global watch sector. The reasons behind such uncontested leadership have everything to do with legacy, craftsmanship, reliability, innovation and prestige. Said another way, the leadership position that Switzerland enjoys today, is the by product of a long history and an evolution focused on being the best, not overnight, but literally year after year, innovation after innovation. A.Favre & Fils (since 1718) represents one of the longest uninterrupted Swiss watchmaking brands in the country, reflecting 300 years of devotion and commitment to the sector. That being said, for a few years the brand passed through the hands of various firms, including a division of the Tata Group, only to be repurchased by the family (Laurent Favre) again a few years ago, with the clear intent of preserving and making flourish the brand for the next generations. This is now where our story beings …
Below we discuss, an investment of 10 million Swiss Francs in A.Favre & Fils (50% of Equity), whose purpose is to give manufacturing, marketing and R&D scale to: a)
a company with proven maximum watchmaking capability, note 70 perfectly functioning units (3 models) already delivered to customers, and
b) a savvy, experienced management team currently positioning the firm to exploit today’s vibrant consumer needs, interests and concerns, including Social Responsibility and Smart Functionality/Wearables/Smart Watches. In simplest of terms: An investor in A.Favre & Fils - takes an established Swiss 300 year legacy artisan brand with some international footprint, and scales it up with respect to manufacturing, marketing & R&D, exploits an already existing network of sales channels to reach very reasonable unit targets.
DMW Finance Group: Alternative Investment Solutions for a low-interest-rate, high-risk world”
In this process of reaching feasible targets, given high margins and price points (30k Chf to 100k Chf), significant firm value* would be created: in particular current firm value (DCF) of 25 million Chf and market value of +100 million Chf in 5 years at current industry acquisition multiples of 12x Ebitda and 2x Sales. Higher stock market multiples could be feasible on higher than industry growth rates. Added sales drivers (not included in forecasts): existing prize winning design capabilities (and models), industry disrupting innovations in Smart Technology/Smart Watches, surprises in gaming industry applications and a campaign, ethos and industry leadership in the use of Social Responsible materials and message. Given that unit targets reflect only 20b.p. of market share in the 10 year forecast (ref: highest watch brand category), the company in our view is highly shielded from current slower dynamics evolving in the larger 21 million unit (28 billion Chf) Swiss watch export market.
Investment Banking M&A: Swiss Luxury Sector
The Swiss Watch Market at A Glance: Total Swiss Watch Exports: 28 Billion Chf, 21 Million Units (2015).
Primary Swiss Export Markets
Top Tier Watch Sales: 1.6 Million Units
Competitors By Price Point: Harry Winston, Patek Philippe, BrĂŠguet, IWC, Panerai
Trends: 3D Printing, Smartwatches, Online
A.Favre & Fils: Forecast Company Metrics
DMW Finance Group: Alternative Investment Solutions for a low-interest-rate, high-risk world�
Asia (942k), Europe (784k), America (353k)
Watch Collector Priorities: Craftsmanship, Reliability, Investment, Prestige
Hedgefund Portfolios & Asset Management Multi Asset Funds of Funds Multi Strategy Portfolios of Hedge Funds Core - Satellite 100% Multi Asset Funds of Funds Portfolios
100% Multi Asset Hedge Fund Portfolios
“Core - Satellite” Combination Strategies
Core
Satellite
World Class Portfolio Construction
Multi Strategy & Multi Asset Portfolios of Funds DMW Finance Asset Management partnerships allow for maximum strategic flexibility, structural advantages & proprietary Big Data assisted fund manager selection processes. Combined with a commitment to non correlated assets classes, monitoring the new alpha sources (managers) and stripping out cost inefficiencies, our portfolios operate with a clear, difficult to replicate advantage. Multi Asset: Equity, Fixed Income, Alternatives (Infrastructure, Private Equity, Hedge)
Core
Multi Strategy: Absolute Return, Convertible Bond Arbitrage, Credit Derivatives Arbitrage, CTA/Managed Futures, Equity Long Short, Equity Market Neutral, Event Driven, Fixed Income, Multi Strategy,Uncorrelated, Volatility Arbitrage
DMW Finance Group: Alternative Investment Solutions for a low-interest-rate, high-risk world”
Structural Advantages & Innovation
20 Billion+ Chf Big Data Analytics of Return Cloud based HF Manager Reporting 11k Database of Funds Minimizing Cost Structure & Monitoring
Case Studies: Hedgefund Portfolios
“Multi Strategy” Portfolio of Hedge Funds
Hence we set about designing one of our own.
A young successful football player from a local football club, came to us with a desire to invest.
The result is an innovative use of modern technology (“Big Data”) and the benefit of critical mass (assets under management) to build a very attractive risk and reward option, at a low cost, and efficient to manage.
We like “macro” and we like it a lot.
Our analysis of his risk profile was that he was extremely “conservative”, given his lack of experience with equity market volatility. Equity market valuations added to concerns.
Our belief is that the big picture on future returns has everything to do with monetary responses to economic activity and crisis.
After checking with many banks, asking for a lowerrisk-positive return solution, i.e. “wealth preservation products”, we found no products that seemed to fit
“Uphill on rates with only a slight positive breeze…”
Basket composition: Absolute Return, Convertible Bond Arbitrage, Credit Derivatives Arbitrage, CTA/ Managed Futures, Equity Long Short, Equity Market Neutral, Event Driven, Fixed Income, Multi Strategy,Uncorrelated, Volatility Arbitrage
Expectations:
Positive equity returns supported by better employment, industrial production, low inflation and low interest rates. Expect low - positive single digit returns. Historically low inflation sets the stage for a negative employment surprise.
“Fed Funds Current + Forecasted” Source: Federal Reserve St. Louis, DMW Finance Gp DMW Finance Group: Alternative Investment Solutions for a low-interest-rate, high-risk world”
DMW - Portfolio Construction Service
Team:
Business Partners:
Steven MORALES
Managing Director / Founder
ALTIS INVESTMENT MANAGEMENT
Zug Switzerland
Tania MANIAS, Geneva
Partner
THE FINE ART GROUP
London, UK
Fernando MOLLER, Madrid
Partner
info@demedranowealth.com
JONES LANG LASALLE
Commercial Real Estate
London, New York
POLO LUXURY & COUNTRY LIFE Magazine
Zurich & Capetown
DMW Finance Group: Alternative Investment Solutions for a low-interest-rate, high-risk world”
ARAB LUXURX WORLD
ZEE Tower, 2nd Floor
Office 206, Dubai Media City
P.O.Box 72184, Dubai, UAE
QUINTESSENTIALLY Lifestyle
Leading Concierge Lifestyle Service
London, Geneva
JEAN RENE GREMANIER
Leading Swiss Wine Producer
Valais, Switzerland