“We’re seeing that the traditional model of allocating 40% of a portfolio to bonds and 60% to public equities has become outdated. Increasingly, it’s essential to incorporate the private equity pillar to bring decorrelation from economic cycles, stability, and attractive long-term returns,” he explained during the interview.
The level of exposure to this asset class may vary, but as Sergio noted, “many Qualitas Funds clients are now raising their allocations to 30% or 40%, always with a long-term outlook and a highly diversified approach in terms of geographies, strategies, companies, and sectors.”
Highlighting the importance of diversification, when asked about the situation in the United States, Sergio pointed out that “it is the largest private equity market globally. Consistently, over the past two decades, it has achieved the highest returns. At present, the US market is being driven by reshoring trends and renewed efforts to reindustrialise the country and increase its independence, creating a favourable environment. We see major opportunities in the mid-market, particularly in niches such as technology, business services, and healthcare. In fact, we have just launched an exclusive fund for the United States, called Qualitas Funds US I. We are so convinced of the opportunity that the Qualitas Funds’ management team has committed its own capital, contributing nearly 15% of the fund’s total size.”
One of the advantages of private equity is that it invests in the real economy, beyond listed companies, which do not always reflect the true business environment. As Sergio explained, “Large listed companies dominate the headlines, but real growth lies within SMEs. Our investments are not based on what might happen to a share price next month. The strategy is to invest long-term in real-economy businesses, taking an active role in creating value within those companies. This differentiating factor is what delivers resilience and the attractive double-digit returns achieved across different economic cycles, with very low volatility.”
During the Negocios TV interview, our founding partner also referred to the current macroeconomic context, marked by monetary normalisation and slower growth in both Europe and the United States: “We’re seeing an environment of reduced access to credit and tighter margins, which requires us to be very selective. That’s why we focus on companies where we can participate directly in value creation, with low levels of debt, attractive entry prices, and growth potential. These characteristics allow us to weather market turbulence so that, regardless of the cycle, our investments continue to deliver double-digit returns with minimal volatility.”
Private equity is no longer the exclusive domain of large institutional investors. As Sergio noted, interest in the asset class is expanding to family offices and even retail investors. “The latest report from SpainCap, the Spanish Private Equity Association, shows that family offices alone increased their exposure to private equity by 35% in 2024.” A figure that clearly reflects the growing appeal of this asset class.