What is Asset and Investment Management?
What exactly does that mean? Ernst Russ AG offers investment opportunities in different asset classes. Its scope of services is very broadly formulated and comprises both capital procurement, the management of the investment phase, and the operative management of the respective asset, the investor management and culmination of the project. The investment phase of an asset – be it a ship, a real estate property, or a project in renewable energies – includes, among other things, process steps, such as market analysis, due diligence and the financial structuring of investment. That is followed by the realization of the investment, and with that the binding participation of the financing partners on the asset.
Scope of services of Ernst Russ AG as a value-added chain
The investment phase is followed by the active management phase of the asset and the phase of investor management. That means that the departments of Ernst Russ AG are specifically entrusted with the care of the investment property – in part even on site – as well as with the management of the finances and investors. After the expiration of the specified validity period, which as a rule is stipulated during the investment, the investment concludes with the disposal of the asset.
Ernst Russ AG: Competence in Financing and Management
At Ernst Russ AG, capital for investments is poured into investment projects through three channels:
- Frankfurt Stock Exchange / Hanseatic Stock Exchange of Hamburg: Here the shares of Ernst Russ AG are traded. That offers shareholders the opportunity to acquire the company shares of Ernst Russ AG and thus participate in the success of the company and at the same time, place their own capital at their disposal for the management to work with it.
- Fully authorized investment management company (HCV Hanseatische Capital Verwaltung GmbH & Co. KG): This company enables Ernst Russ AG to bring together private and (semi) professional investors for investment projects in the area of AIFs (Alternative Investment Funds).
- Investment funds or banks: Through these vehicles, it is possible for professional investors to participate in large projects – possibly in cooperation with Ernst Russ AG. Ernst Russ AG thus offers a broad-based investor group (private, semi-professional and professional investors as well as potential shareholders) an interesting spectrum for their financing objectives.
The financial partnerships are contracted in writing prior to the operationalization of the asset, i.e. the management of the property, for instance, a ship or a real estate property. This proceeds in a practical manner: For the asset class of ship, operative asset management means closing of freightage contracts or booking cargos. The ship needs a crew and must also be refuelled. The experts of Ernst Russ AG take care of that and many other tasks. In parallel to the asset management, investor management is conducted to facilitate the servicing of the needs of the investors. The business team of Ernst Russ AG informs the investors about the development of their property, manages the financial contributions, communicates with the corresponding committees and ensures that all legal provisions for the respective investment is strictly followed.
Generally, the conditions for ending the financial commitment between the partners and the financing banks are already defined at the time of investment. Here, different factors can play a role: time, a certain price situation on the respective markets or the realization of a certain sum of profit. Such factors determine the exit point. If the conditions are correspondingly reached, the object is sold.
Ernst Russ AG: One-Stop Shop and Provider of Sub-Projects
Ernst Russ AG thus offers customers and investors a “one-stop shop” for the investment phase, management phase and exit. All services are tailored to the needs of the respective customer and also optimized to suit individual customer needs – in particular, in the shipping, private equity or real estate sectors. At the same time, it is possible to use only parts of the range of services that Ernst Russ AG provides. This means, for instance, in shipping that the customer requests crewing or freighting, or enters into a charter agreement, but does not utilise any financing Services.
Ships Based on Competence and Passion
Ernst Russ AG is particularly strong in the shipping sector and has access to all components of the service of the maritime value-added-chain. That includes both the choice of ship portfolios for investors, their assessment and integration as well as the technical/commercial management and sale of ships. As a general shipping management company, Ernst Russ AG may, for the benefit of the investors, independently charter the ship as its asset, provide it with a crew and maintain it. In order to be able to provide these services comprehensively both in investment as well as in asset management, and yet also with attention to detail, Ernst Russ AG cooperates with a network of companies in relevant sectors. The future of Ernst Russ AG is based on these relations as well as on the comprehensive knowledge of its staff.