Vesta Wealth Partners Ltd.

Many Canadians and their investment managers limit their investments to securities listed on public stock exchanges, sometimes without a full understanding of the various risks involved in these investments. This limited view and lack of exposure to other types of investments may mean that some investors may not be optimizing their portfolio’s investment potential and may create a gap in the market for those seeking to optimize returns, diversify or better manage certain risks.

Vesta Wealth Partners has identified this gap and seeks to bridge it by providing clients with access to a suite of institutional investments managed by experienced managers, and often at minimum investment amounts lower than those typically available to individual clients and advisors.

Different from the highly liquid publicly traded securities, which can be sold on demand, private market investments often place restrictions on resale or other methods of obtaining liquidity and require a longer-term commitment from investors. By choosing private markets, investors seek to achieve higher returns in exchange for this restriction on liquidity. For clients who have lower liquidity requirements or a longer-term investment horizon, private market investments may be a suitable investment option for those clients.

By offering investment advisors and their clients access to these institutional-style investments, Vesta Wealth Partners believes it can bridge this gap and help clients achieve their financial goals in the long term.

“Many of our investors are well-positioned to pursue long-term investment strategies. This allows them and their advisors to focus on investments with extended investment horizons and with the potential to optimize returns over time,” explains Max Fortmuller, CEO.

Vesta Wealth Partners has diversified its offerings by introducing three distinct funds to the Canadian market, each tailored to meet varying investment needs.

Vesta Enhanced Equity Fund (VEEF)

The Vesta Enhanced Equity Fund (VEEF) is a cornerstone product of Vesta Wealth Partners, boasting a total return of 95.53 percent since its inception on March 16, 2021 (as of March 31, 2024). VEEF has been structured to cater to investors seeking their investments to outperform the S&P 500 by 3.5 percent annualized, measured over a five-year rolling period. It has significantly outperformed this benchmark from inception.

VEEF epitomizes the essence of what Vesta Wealth Partners offers. VEEF seeks alternative investment avenues like private equity, secondary investments, private infrastructure, private credit, and real estate, along with select co-investments. In addition to this approach, VEEF adds a public markets strategy, offering exposure to public markets while aspiring to capture upside potential and mitigate downside risk.

Vesta believes that VEEF will be of interest to investors who have lower liquidity requirements with a view of potentially achieving higher returns with lower volatility. The fund combines managed private equity with publicly listed equity options, allowing for exposure to high-growth opportunities while mitigating downside risk. Vesta believes that this multi-strategy approach provides a robust and diversified investment portfolio designed to navigate market fluctuations.

Cerulean

Cerulean is a standout offering within Vesta Wealth Partners’ portfolio. It is a single-purpose feeder fund that invests in an evergreen global buyout fund renowned for its innovative approach to long-term investments. Since its initial close on December 31, 2020, Cerulean has achieved impressive returns: 110 percent for Series A and 115 percent for Series F as of March 31, 2024.

The founders of the fund in which Cerulean has invested have extensive experience managing private capital for global institutions. They observed that successful companies often lacked long-term investment partners due to the traditional private equity cycle, which often disrupts growth by necessitating the return of capital to investors. The fund addresses this by retaining ownership of companies with growth potential, thereby challenging the conventional limited partnership structure.

Cerulean was created to significantly lower the entry barrier to this opportunity from the $10M minimum required by the underlying fund. By introducing an annual liquidity mechanism, Vesta hoped to create an offering that provided more liquidity than a traditional private equity fund.

Vesta CL Fund (VCLF)

This fund is now closed, however, along with the other offerings Vesta has built, this fund goes to show the unique risk return features Vesta looks for in the products we offer. The Vesta CL Fund (VCLF) is a unique single-purpose feeder fund focused on structured finance, with investments targeted at intellectual property litigation lawsuits in the U.S. Vesta believes this investment strategy provides returns that are non-correlated to public markets and a diversification opportunity. Investments in litigation finance are not directly related to the conditions of equity markets and may be suitable for investors seeking to diversify their portfolios.

Litigation finance, especially in intellectual property cases, is compelling due to the critical need for ample funding. Corporations and governments must have sufficient financial resources to pursue their legal battles. The outcome of one lawsuit is not influenced by another, offering non-correlated returns that are independent of the financial markets.

Contact Vesta Wealth Partners today to enhance your investment strategy with our unique institutional funds. Discover how our tailored solutions can help you and your clients achieve your long-term financial goals.