With public equity and debt markets under unrelenting pressure and traditional approaches to diversification struggling, private capital markets are growing and delivering the performance that public markets aren't.
The private investment industry grew to $11 trillion at year-end 2021 and is projected to hit $16 trillion by 2027. The primary beneficiaries of this growth have historically been institutional investors with only limited participation by individual investors.
Axxes Capital is here to help level the playing field by working exclusively with wealth advisors to provide private investment solutions designed to better diversify client portfolios and achieve higher overall risk-adjusted returns.
Click here to read our white paper on the benefits of private investments as part of a diversified portfolio.
S&P 500
Private Equity Index
Chart of Private Equity Index vs the S&P 500 Index
Axxes Capital believes the time to pursue private investments as a portfolio diversification strategy is now, as private investments continue to provide attractive risk-adjusted returns, low correlations, and outperformance relative to public markets. 1
Our investment funds will allow daily subscriptions using ticker symbols, avoiding the administratively intensive subscription document (sub-doc) process. Axxes Capital intends to remove friction and make it easier for advisors and their clients to allocate to alternatives.
Our funds plan to be evergreen and offered in perpetuity, enabling wealth advisors to allocate to client portfolios consistently and effectively over time through dollar-cost-averaging.
Our investment funds provide the simplicity of 1099 tax reporting.
Each of our investment funds will offer quarterly liquidity for 100% of redemptions up to 5% of the fund's net assets. Above 5%, the redemptions will be prorated accordingly.
Our funds will offer low investment minimums across share classes ($25,000).
Axxes Capital will source the market to identify and select top-tier asset managers with sector-specific expertise. We don't believe any one firm has true expertise across the entire private market spectrum, and because we are not constrained by proprietary management, we seek top managers on behalf of our advisors and their clients.
Wealth advisors will be able to reallocate easily with no-charge exchanges across our suite of funds enabling the rebalancing of clients' private investment allocations without penalties or additional costs (subject to fund-level liquidity constraints).
1 Important risk warning: Past performance is not indicative of future results. Returns gross of fees. Private equity is not an investable index and is used solely for illustrative purposes. The Cambridge Associates (CA) Private Equity Index is a pooled horizon IRR calculation based on quarterly data compiled from over 8,300 private equity funds, including fully liquidated partnerships formed between 1986 and 2020. S&P 500 TR Index data are annually compounded return calculations which are time-weighted measures and are shown for reference and directional purposes only. The CA PE Index is not an investable index and is used solely for illustrative purposes.The CA PE Index includes only buyout and growth equity funds that match the investment opportunities to be offered by Axxes Capital. Due to the fundamental differences between the two calculations, we don't recommend directly comparing IRRs to time-weighted returns. The chart shows the net growth of a $100,000 hypothetical initial investment in the referenced indexes on December 31, 1999. Index data does not include the effect of Axxes Capital feeder fees that are levied on top of the private equity funds offered and are estimated to decrease their net returns by 2.3 percent on an annual basis. Returns shown are in USD so currency movements will affect the returns you receive. Past performance doesn't guarantee future returns. Source: Cambridge Associates Index and Selected Benchmark Statistics report, Q4 2020.
