Transferring capital through private equity

Aim for a family income - IR

For a household, the challenge is not just to invest available capital: it is often a question of securing a family's standard of living over the long term, anticipating uncertainties and providing visibility on future income. Starting from a target income, private equity—uncorrelated with listed markets and anchored in the real economy—makes it possible to structure a long-term portfolio whose distributions can, at maturity, help generate additional income for the household.

Customer context

Horizon

10 to 20 years.

Objective:

Define a target level of additional family income.

Available capital:

≥ $300,000 – $400,000

The objectives

Determine the desired additional annual income for the household, then calibrate a gradual commitment trajectory to build a mature portfolio capable of generating regular distributions (gross or net of income tax, depending on assumptions).

Re-Up via Odyssey

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

Starting with a mature portfolio (often around year 7), the first distributions from the initial vintages can help finance new capital calls, reducing the need for additional capital injections while maintaining exposure.

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Strategic architecture

Consistent annual commitment

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.

Time-limited funding effort

The gap between commitments and calls for funds allows cash flow to be spread out over the first few years, making the financing effort more compatible with the household's budget balance.

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Progressive self-financing of the portfolio

When the first vintages enter the distribution phase, the cash flows generated can gradually contribute to financing future calls. The overlap between the investment and distribution phases promotes more stable cash flow dynamics at maturity.

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Steering via simulation

The trajectory can be constructed from:

• Available capital

• Target capital at a given time horizon

• Target income

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 advantages for investors

Concrete goal-based management: setting the trajectory based on a target family income rather than simply on the amount invested.

Enhanced readability: projections can be displayed gross or net of income tax, depending on the parameters selected.

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

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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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