Building wealth through private equity

Create liquid capital - IR

For investors subject to income tax, the objective may be to transform available capital into a structured trajectory that will ultimately allow them to rebuild liquid capital. It is not just a question of seeking performance, but of organizing from the outset an investment phase followed by a phase of gradual distributions. Private equity, which is uncorrelated with listed markets and anchored in the real economy, makes it possible to plan for this ramp-up and then the gradual recovery of liquidity.

Customer context

Horizon

10 to 20 years.

Objective:

Structure an investment path geared toward rebuilding liquid capital at maturity.

Available capital:

≥ $300,000 – $400,000

The objectives

Gradually build up a private equity portfolio, then, once mature, organize a distribution phase to recreate liquid capital (gross or net of income tax, depending on assumptions), while maintaining visibility on the initial financing effort and the dynamics of future cash flows.

Re-Up via Odyssey

The Re-Up program via Odyssey through consistent annual commitment and a disciplined multi-vintage approach, investors build gradual exposure to private equity.

As older vintages enter the distribution phase (often around year 7), the cash flows generated enable a gradual recovery of liquidity, while maintaining the overall consistency of the strategy.

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Strategic architecture

Multi-vintage construction

Investors commit to several vintages each year, in a regular and structured manner, in order to smooth out economic cycles and avoid concentration on a single entry point.

Overlaying flows

The natural gap between commitments and capital calls allows cash flow to be spread out over the first few years, limiting the low point in cash flow and making the trajectory easier to read.

Institutional distribution logic

The overlapping of vintages during the distribution phase generates regular cash flows upon maturity. These distributions can be retained in order to gradually rebuild liquid capital available for new projects, further diversification, or transfer.

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Steering via simulation

The trajectory can be constructed from:

• Available capital

• Target capital at a given time horizon

• Target income

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Projections can be expressed gross or net of income tax. The modeling incorporates capital calls, cash flow troughs, and estimates of future cash flows.

Taxation: gains realized are subject to the applicable capital gains tax regime.

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The benefits for the customer

A trajectory planned from the outset: organization of an investment phase followed by a gradual recovery phase.

Enhanced financial clarity: projections can be made in gross or net of income tax, depending on the parameters selected.

Institutional discipline: regular commitments and temporal diversification to smooth out cycles.

Greater asset flexibility at maturity.

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This document is for informational purposes only and does not constitute investment advice or personalized recommendations. Private equity involves a risk of capital loss and long-term illiquidity.

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