Everest Wealth’s alternative investment strategy offers stability amid South Africa’s economic challenges

Traditional investment strategies are no longer the only option for investors, as South Africa grapples with low economic growth, a trade off between inflation and interest rates as well as, albeit evolving, a difficult to manoeuvre political landscape.

In response, Everest Wealth, a private investment firm, pivoted to alternative investments in the form of private equity and private debt to provide stability and growth during these challenging times.

• Click here to learn more about Everest Wealth.

Economic Pressures Challenge Traditional Investments

Thys van Zyl, CEO of Everest Wealth, underscores the necessity of adapting investment strategies. “The South African economic landscape is fraught with challenges such as high inflation, social instability, and a weakening currency, over medium to long term periods” van Zyl states.

“Traditional investment strategies on their own are no longer sufficient in this volatile environment. Investors must explore more resilient solutions to diversify.”

Investors have relied heavily on financial planners to guide their investment decisions for years. However, van Zyl points out that  financial planners should also keep up with the pace of evolving financial solutions. “It’s crucial to explore whether your financial planner has updated their strategies in response to these new challenges,” he says.

Everest Wealth’s Holistic Approach to Alternative Investments

At Everest Wealth, the focus is shifting to managing both listed and unlisted portfolios, with a particular emphasis on private equity and private debt. “Our holistic approach integrates alternative investments to enhance portfolio performance,” van Zyl explains.

“We’ve developed a  portfolio that has become a proven concept which not only performs well but also demonstrates the value of including alternatives in investment strategies.”

The company’s collaboration with Laudian Investment Holdings as the private equity holdings company highlights its commitment to innovative investment solutions. Laudian employs the “Pillar Strategy,” which divides investments into distinct sectors to maximise growth opportunities and ensure effective diversity management.

“The Pillar Strategy is pivotal in today’s unstable market,” van Zyl notes. “It provides a structured investment approach that is crucial for navigating economic uncertainties.”

The Benefits of alternative investments in a Volatile Market

Everest Wealth’s private equity and private debt approach includes a rigorous investment process of oversight of pre-evaluating quantitative and qualitative business factors, actively and comprehensively steering clear business plans and prudently applying post-acquisition valuation policies .

Comparing traditional listed companies with private equity investments, van Zyl illustrates the effectiveness of their strategy. “For instance, a top-listed tech company might show significant price volatility, fluctuating between R1,350 and R1,650,” he explains.

“In contrast, an unlisted tech company under private equity management, despite similar financial results, can maintain more prolonged a stable valuation and strategic growth plan.”

Proven Success and Future Outlook

Everest Wealth’s approach has yielded impressive results even amidst economic uncertainty. “Both listed and unlisted companies have demonstrated robust performance despite the challenging environment,” van Zyl reports. “Our transparent and well-governed investment strategy is not just a concept but a proven solution.”

As South Africa continues to navigate its economic challenges, Everest Wealth’s focus on private equity offers a promising path for investors seeking stability and growth.

Click here to learn more about Everest Wealth.