In addition to a rich history in the world of banking and capital markets, the Hottinger family has always been a pioneering force in the world of alternative investments. Today, clients of Hottinger continue to recognise the role of alternative investments in their portfolios. We source and present a range of interesting private investment opportunities to our clients through Hottinger Investment Circle.
Hottinger Investment Circle was launched to coincide with the 150th anniversary of the James Tissot painting “Le Cercle de la rue Royale” (1868), which depicts Baron Jean Conrad Hottinger gathered with eleven of his fellow club members in Paris. Like many of today’s private investors, the twelve subjects collaborated to invest in venture capital deals of their time.
Today’s Hottinger Investment Circle members pay an annual retainer fee for access to a dedicated online platform displaying direct investment opportunities for review, which will typically involve the purchase of shares or debt securities of unlisted entities or secured lending to such entities.
Existing members can access the platform using the ‘Login’ option above.
Risk Warnings
Investments accessed via Hottinger Investment Circle will usually be in the shares or debt securities of private, unlisted companies, or secured lending to these companies, which might also be start-up or early stage companies.
We regard these investments as appropriate only for high net worth and sophisticated investors i.e. those who can understand and bear the risks involved, which may include a loss of some or all of the capital invested. The below list is not exhaustive but the risks of investing in businesses such as these are likely to include:
Potential loss of capital
Investments will be in non-readily realisable securities and similar investments, issued by unlisted companies. These companies may have a limited track record and operating history. Investors may lose some or all of the capital invested.
Illiquidity
Investors should note that an investment of this type is highly illiquid and its value is volatile and can suffer from adverse or unexpected market moves. There is unlikely to be any secondary market or other clear means of exiting any Investment other than if the company sells its shares or arranges a flotation of its shares on a stock exchange or other market.
Unlimited duration
There is no time limit for investment in the types of investment available via Hottinger Investment Circle. It may not be possible to liquidate, redeem or withdraw from any Investment. Investments should be regarded as long term.
No dividends or other income
Early stage and start-up companies rarely pay dividends. Investors should not look to any investments available via Hottinger Investment Circle as likely to provide any income in the foreseeable future. Investments may pay interest on loan instruments or dividends, others may not and investors should not look to any investment in a company entered into as a result of using the Service to provide them with a reliable income.
Dilution
Investments are likely to be subject to dilution. This means that if the company raises additional capital at a later date, it will issue new shares to the new investors, and the percentage of the business that investors own will decline. These new shares may also have certain preferential rights to dividends, sale proceeds and other matters, and the exercise of these rights may work to investors’ disadvantage. Investments may also be subject to dilution as a result of the grant of options (or similar rights to acquire shares) to employees of, service providers to or certain other contacts of, the Company.
Tax
Investors should take appropriate advice on the tax consequences of investing. The tax treatment of the investments available via Hottinger Investment Circle may depend on individual circumstances. Schemes for tax reliefs (such as the EIS and SEIS schemes) depend a range of issues on the circumstances of each investor and can be changed or withdrawn.
Investors should only invest through Hottinger Investment Circle as part of a diversified portfolio containing a range of investments of different types and risk categories. Investors should not invest more than they would feel comfortable to lose.
