Capital growth

The company that was to become Capital-38 opened the doors to its London office in 1977. The timing of our arrival would prove transformational for both the company, and the family. Even for a market where property had been a lucrative investment choice for generations, the years following 1977 witnessed a period of exceptional growth, especially for prime London real estate. Over the next four decades London property became a central driver of the family’s wealth. Spiralling property prices in the capital were matched by the company’s own growth, and by the formation of tight working relationships with the biggest, most respected names in UK property. The strength of those relationships has helped Capital-38 deliver more than four decades of unmitigated success.

Expanding horizons

Capital-38’s property assets are a mix of commercial and residential investments as well selected warehouse, care home and student housing projects. Initially focused on high-yield London real estate, Capital-38’s expertise and interests have expanded beyond the capital into investment opportunities that deliver significant capital growth potential. Amongst other holdings, the current Capital-38 property portfolio includes renovation projects focused on distressed UK properties and investment projects in university cities across the UK. In addition to UK holdings, the complete Capital-38 property portfolio includes investments in Continental Europe, North America, MENA, and South-East Asia.

As the scale and breadth of Capital-38’s financial interests have expanded, so has the need for expert liquidity management. At any one time, the team needs an immediate and comprehensive overview of every different sector of the investment portfolio to manage liquidity. The Capital-38 team are constantly evaluating wealth across the entire group to maintain a careful balance of cash reserves and illiquid, long-term holdings. That oversight guarantees the flexibility needed to respond quickly and effectively to shifting situations. In a world where wealth can be transformed overnight, the Capital-38 team are constantly equipped to meet the unexpected.

Our approach to liquidity management is built around three core considerations:

Diversification

Diversity is the foundation of every sensible investment strategy. Capital-38 manages a delicate balance of long-term wealth reserves and highly liquid investments that deliver a return in excess of standard Financial Institutes and asset managers.

Risk management

Every investment opportunity is comprehensibly vetted by key members of the Capital-38 team to minimise exposure to risk. We prioritise high-quality securities that protect the initial investment, offer liquidity and deliver healthy returns.

Experience

The core Capital-38 team is a group of highly experienced, international financial experts each literate in different areas of investment. Our combined knowledge of rates, credit and risk management gives us the confidence to thrive whatever the economic landscape. As the influence of digital has become increasingly important to all areas of finance, Capital-38 has expanded to welcome professionals with strong IT and technology credentials. Their knowledge guides our decisions and helps us identify the opportunities presented by a constantly shifting landscape. Today the Capital-38 team unites financiers, investment analysts, technology experts and lawyers, all working together to further and protect the families interests. Together we advise, we manage, we guide, and we protect.

In addition to a broad portfolio of orthodox financial securities, Capital-38 manages a varied collection of alternative investments in both private equity and other funds.

Investing in the future

In recent years Capital-38 has overseen an increasing number of private equity investments, particularly those with strong ESG credentials. As Capital-38 insist upon a diligent screening process to inform decision making, many of those investments have delivered incredible returns to make alternative investing an increasingly important pillar of wealth generation.

Experienced and versatile

When it comes to assessing and comparing the value of very different asset classes, experience is paramount. With decades of investment and business experience shared by the group, the Capital-38 team are able to recognise and nurture the potential of a broad variety of private equity assets.

To grow and protect the family’s wealth. That ambition was the driving force behind the creation of our original single family office in 1938. Today’s financial landscape may be infinitely more complex, but the purpose of our organisation has never changed. Capital-38 manages a portfolio of global and diversified investments with a presence in every major financial market. Our approach to investment is dictated by four principles.

Long-term vision

We exist to build long-term, generational wealth. That perspective has helped the team navigate successfully through multiple international crises and periods of global economic upheaval. Impervious to the day-to-day volatility of markets, Capital-38 is firmly focused on the creation of an enduring financial legacy.

The power of relationships

Capital-38 works closely with the world’s financial institutions and asset managers, trusts and fund managers. Fostered over decades, those relationships give the Capital-38 team unprecedented access to financial products and services.

Exacting standards

As an entirely independent investment team, Capital-38 is free to explore opportunities across markets and categories. We subject potential investments to a rigorous vetting process to identify best in class opportunities within every different sector. To keep on the front foot in a highly competitive market, we apply that same rigour to ourselves. We source top talent and benchmark the performance of the group against the very best.

Ethical responsibilities

As a single family office, reputation is as valuable to Capital-38 as profit. No investment is considered unless it aligns with a strict code of ethical and sustainable standards.

As the scale and international footprint of the family’s interests have expanded, so has the complexity of legal, tax and governance requirements. To keep in step with a marked increase in regulations and scrutiny, Capital-38’s legal department has evolved to become a highly specialised unit with international expertise. This growth has expanded the group’s capabilities beyond wealth generation to provide the family with expert guidance regarding governance, ownership structures and succession planning.

Compliance

With investments spread across markets and asset classes, tax planning and submission is a critical function of the Capital-38 team. As well as the expertise we have gained over the years, accurate reporting is made easier by an insistence upon clear and transparent knowledge sharing within the team.

International legal expertise

To advise the family on acquisitions and investments in different markets, we frequently expand the expertise of the Capital-38 by working with trusted international legal partners. These partnerships help us protect the family’s wealth and reputation wherever we do business.