Frequently Asked Questions

HMC Capital has two main business areas: Investment Management and Placement & Advisory. Through these areas, the firm provides access to proprietary funds, third-party funds, alternative investment strategies, and liquid solutions managed by specialized asset managers. In Investment Management, HMC Capital develops and manages strategies across different asset classes, including private markets, Evergreen funds, and solutions designed for institutional and private investors. In Placement & Advisory, HMC Capital supports global asset managers in their relationships with investors in Latin America, combining regional knowledge, local expertise, and access to a broad network of institutional and wealth management clients.

Tags: [HMC Capital] [Investment Management] [Placement & Advisory] [Liquid Strategies]

HMC Capital specializes in alternative investments and private markets, including Private Equity, Private Credit, Real Assets, Venture Capital/Growth, and Evergreen funds. These strategies allow investors to access opportunities that are typically outside traditional public markets. In addition, HMC Capital provides access to liquid / Long-Only strategies, including fixed income, equities, and diversified solutions managed by global asset managers. This combination makes it possible to build broader investment solutions adapted to different objectives, risk profiles, investment horizons, and regulatory needs of investors in Latin America.

Tags: [HMC Capital] [Alternative Assets] [Private Markets] [Liquid Strategies]

The investment opportunities available through HMC Capital may vary depending on the country, investor profile, regulatory requirements, and the specific characteristics of each strategy. Interested investors can contact the HMC Capital team to learn about the available alternatives and evaluate which may be suitable based on their financial objectives, investment horizon, risk tolerance, and regulatory situation. The HMC Capital team supports this process with information about the strategies, their main characteristics, associated risks, and access conditions. Contact Us

Tags: [HMC Capital] [Investor Access] [Regulatory Requirements]

Alternative assets are investments that differ from traditional instruments, such as publicly traded stocks and bonds. They include strategies such as Private Equity, Private Credit, Real Assets, infrastructure, real estate, Venture Capital, secondaries, and other private investment vehicles. Unlike public markets, many alternative investments are made in private companies, physical assets, infrastructure projects, or direct loans. They generally require longer investment horizons, lower liquidity, and specialized analysis, but may provide access to opportunities that are not available in traditional markets. For institutional and private investors, alternative assets can play different roles within a portfolio, including diversification, capital growth, income generation, and exposure to sources of return that are less dependent on public markets. HMC Capital develops educational content on alternative assets through HMC Academy and provides access to global strategies in private markets for different investor profiles. Learn more about alternative assets at HMC Academy

Tags: [Alternative Assets] [Key Concepts] [Private Markets]

Alternative assets can complement a traditional portfolio by providing exposure to sources of return that differ from public stocks and bonds. Many investors include them to broaden their investment universe, access private opportunities, and diversify their portfolios across different economic cycles. Depending on the strategy, alternative assets can play different roles. Private Equity and Venture Capital are often associated with long-term capital growth; Private Credit may contribute to income generation; and Real Assets, such as real estate and infrastructure, may offer exposure to assets with contractual cash flows or mechanisms linked to inflation adjustments. These benefits are not guaranteed and should be evaluated considering the strategy, vehicle, manager, investment horizon, liquidity, and investor risk profile. Learn more about alternative assets at HMC Academy

Tags: [Alternative Assets] [Investment Evaluation] [Portfolio Construction] [Asset Allocation]

Alternative assets can play different roles within a portfolio, mainly capital growth, income generation, and diversification. The specific role will depend on the asset class, selected strategy, manager, investment horizon, and market conditions. For example, some Private Equity and Venture Capital strategies seek to capture long-term growth by investing in private companies. Private Credit, Real Estate, and infrastructure may be more closely associated with income generation through interest, rents, or long-term contracts. Other alternative strategies may contribute to diversification by having dynamics that differ from traditional public markets. The inclusion of alternative assets should be analyzed within the context of the overall portfolio, considering both their potential benefits and their risks, costs, liquidity, and operational complexity. Learn more about alternative assets at HMC Academy

Tags: [Alternative Assets] [Portfolio Construction] [Asset Allocation] [Diversification]

Alternative investments involve risks that should be carefully evaluated. The main risks include lower liquidity, longer investment horizons, less frequent asset valuation, capital calls, costs and fees, operational risk, use of leverage, and reliance on the manager’s capabilities. In closed-end funds, capital is typically committed for several years and may be called gradually as the manager identifies opportunities. In semi-liquid or Evergreen structures, there may be greater flexibility for subscriptions and exits, but redemptions are usually subject to specific conditions, liquidity windows, limits, or gates. Therefore, before investing in alternative assets, it is important to analyze the strategy, vehicle, manager experience, liquidity structure, regulatory conditions, and suitability of the investment for the investor’s profile. HMC Capital incorporates these factors in its analysis of alternative strategies and in its educational content for investors. Learn more about alternative assets at HMC Academy

Tags: [Alternative Assets] [Investment Evaluation] [Risk] [Liquidity]

Private Equity is an investment strategy that consists of investing in private companies or in public companies that are acquired with the intention of taking them private. The objective is to create value over time through growth, operational improvements, expansion, acquisitions, financial strengthening, or other strategic initiatives. Private Equity funds typically work with companies for several years before monetizing the investment. The exit may take place through a strategic sale, a sale to another fund, an initial public offering, or other divestment alternatives. Within Private Equity, there are different strategies, such as Venture Capital, Growth, and Buyout, which differ by company type, stage of development, risk profile, and return potential. Learn more about alternative assets at HMC Academy

Tags: [Alternative Assets] [Key Concepts] [Private Equity] [Value Creation]

Private Equity may provide exposure to private companies and opportunities that are not typically available in public markets. Its objective is to create value over time through growth, operational improvements, expansion, acquisitions, financial strengthening, or other strategic initiatives. Within a portfolio, Private Equity may contribute to capital growth and diversification, particularly for investors with long-term horizons. However, it also involves relevant risks, such as lower liquidity, long investment horizons, sensitivity to the economic cycle, dependence on exit conditions, use of leverage, dispersion of results among managers, and risks specific to the underlying companies. Therefore, when evaluating a Private Equity investment, it is important to analyze the strategy, manager, vintage, diversification, value creation process, and alignment with the investor’s objectives. Learn more about alternative assets at HMC Academy

Tags: [Alternative Assets] [Investment Evaluation] [Private Equity] [Risk]

The main difference is that Private Equity invests in private companies or companies that are taken private, while public equities are shares of listed companies that are bought and sold on stock exchanges. Public equities generally offer greater liquidity, daily observable prices, and access to information regulated by the market. Private Equity, by contrast, typically involves longer investment horizons, lower liquidity, less frequent valuations, and a more active role by the manager in creating value within the companies. Both strategies can play different roles within a portfolio. Public equities provide liquid exposure to listed markets, while Private Equity provides access to private opportunities with long-term growth and transformation potential.

Tags: [Alternative Assets] [Key Concepts] [Private Equity] [Public Markets] [Liquidity]

Private Credit is an investment strategy that consists of providing financing to companies or projects outside traditional public markets. This financing is generally provided by non-bank institutions, such as specialized funds, and may take different structures depending on the borrower’s needs and the strategy’s risk profile. Private Credit includes strategies such as Direct Lending, Mezzanine, Distressed Debt, and Special Situations. Some seek to generate income through interest payments, while others focus on more complex opportunities, such as restructurings, special situations, or debt purchased at a discount. For investors, Private Credit may represent an alternative source of income and diversification compared with traditional fixed income. However, it requires careful evaluation of credit quality, collateral, covenants, liquidity, legal structure, sensitivity to the economic cycle, and the manager’s ability to manage risks.

Tags: [Alternative Assets] [Key Concepts] [Private Credit] [Private Markets]

Real Assets are investments linked to tangible or physical assets, such as real estate, infrastructure, natural resources, energy, transportation, telecommunications, or other assets that are essential to the economy. Within this category, Real Estate and infrastructure are typically two of the most relevant strategies. Real Estate may include assets such as offices, residential properties, logistics centers, warehouses, or retail properties. Infrastructure may include roads, ports, airports, energy networks, telecommunications, water, or waste management. Real Assets can help diversify a portfolio because their cash flows and valuations often depend on factors that differ from those driving public stocks and bonds. Depending on the strategy, they may also provide recurring income, long-term contracts, or mechanisms linked to inflation adjustments. Their risks include liquidity, leverage, regulation, execution, valuation, and specific conditions related to each asset or sector.

Tags: [Alternative Assets] [Key Concepts] [Real Assets] [Diversification] [Asset Allocation]

Venture Capital is a strategy within private capital focused on investing in young, innovative, or early-stage companies with high growth potential. These companies are often linked to sectors such as technology, internet, biotech, healthcare tech, or other scalable business models. Venture Capital funds provide capital to support the development, expansion, and scaling of these companies. Unlike more mature strategies, Venture Capital usually involves higher risk, as many companies are still validating their product, business model, or growth capacity. Within an alternative investment portfolio, Venture Capital can provide exposure to innovation and long-term growth, although it requires high diversification, specialized analysis, and tolerance for volatility and dispersion of results.

Tags: [Alternative Assets] [Key Concepts] [Venture Capital] [Growth]

Building a diversified long-term portfolio requires combining different asset classes, strategies, geographies, currencies, managers, and investment horizons. The objective is to reduce dependence on a single source of return and align the portfolio with the investor’s objectives, constraints, and risk profile. In alternative assets, portfolio construction often considers three stages: planning, design and implementation, and monitoring. In the planning stage, the program’s objectives - such as growth, income generation, or diversification - are defined together with liquidity constraints, investment horizon, regulation, taxes, and internal resources. In the design stage, the role of each strategy within the portfolio is defined and managers are selected through due diligence. Finally, monitoring makes it possible to review exposure, liquidity, diversification, performance, and potential deviations from the original strategy. A long-term portfolio can combine traditional assets, such as stocks and bonds, with alternative strategies such as Private Equity, Private Credit, Real Assets, Venture Capital/Growth, secondaries, Evergreen funds, and liquid strategies, depending on the investor’s profile and needs.

Tags: [Alternative Assets] [Portfolio Construction] [Asset Allocation] [Diversification]

A Fund of Funds, or FoF, is a strategy that invests in several investment funds instead of investing directly in companies, projects, or individual assets. This provides access to a more diversified portfolio and to different specialized managers through a single investment. In private markets, funds of funds can facilitate portfolio construction by providing exposure to multiple strategies, geographies, vintages, and managers. They may also help reduce barriers to entry, as they often require lower minimum investment amounts than individual funds. However, this structure also has important considerations. Because there is an additional layer of management, costs may be higher, and excessive diversification can dilute exposure to the best individual opportunities. Therefore, when evaluating a fund of funds, it is important to analyze the quality of the manager, portfolio construction, fees, diversification, and fund selection strategy.

Tags: [Key Concepts] [Fund of Funds] [Private Markets] [Diversification]

A co-investment is an opportunity in which an investor participates directly in a company, asset, or transaction alongside an investment manager or fund. Unlike a traditional fund investment, where the investor accesses a full portfolio managed by the manager, a co-investment provides exposure to a specific opportunity. Co-investments often complement investments made through funds, allowing investors to increase exposure to a particular transaction, improve cost efficiency in some cases, and gain greater visibility into the underlying asset. They can also be a way to deepen the relationship with a manager and access opportunities that are not always available to all investors. However, they require greater analytical capacity, speed of execution, and tolerance for concentration risk. Therefore, before participating in a co-investment, it is important to evaluate the quality of the manager, the investment thesis, transaction structure, asset-specific risks, and the impact on the overall portfolio.

Tags: [Key Concepts] [Co-Investment] [Private Markets] [Investment Evaluation]

The secondary market in Private Equity allows investors to buy or sell existing interests in private funds before those funds reach maturity. Unlike a primary investment, in which the investor commits capital to a new fund, a secondary transaction makes it possible to acquire exposure to funds or assets that already have a developed investment history. For some investors, the secondary market may offer a liquidity alternative in an asset class that is typically illiquid. For others, it may represent a way to access more mature portfolios, with greater visibility into the underlying assets, potential mitigation of the J-curve, and a shorter return horizon. These transactions also involve risks. The price may include discounts or premiums to the reported fund value, available information may be limited, and performance will depend on the quality of the assets, the manager, the timing of entry, and exit conditions. Therefore, analysis of the underlying portfolio, valuations, expected cash flows, and liquidity is key.

Tags: [Key Concepts] [Secondaries] [Private Equity] [Liquidity]

An Evergreen fund is an investment vehicle designed to operate continuously, without a predetermined maturity date. It may also be known as an open-ended, perpetual, or semi-liquid fund, depending on its structure and regulation. Unlike traditional closed-end funds, which typically have a defined life and capital calls during the first years, Evergreen funds allow periodic subscriptions and, in many cases, liquidity or redemption windows under certain conditions. This can provide a more flexible investment experience and immediate access to an already constructed portfolio. However, the liquidity of these funds should not be interpreted as guaranteed liquidity. Redemptions may be subject to specific windows, limits, gates, availability of liquid assets, and market conditions. In addition, managing an Evergreen fund requires strong operational capabilities from the manager, as it must simultaneously manage investments, valuations, subscriptions, redemptions, and portfolio liquidity.

Tags: [Key Concepts] [Evergreen Funds] [Semi-Liquid Funds] [Liquidity]

Liquidity is the ease with which an investment can be converted into cash without significantly affecting its value. A more liquid investment can be bought or sold more quickly, while a less liquid investment may require more time, specific conditions, or accepting discounts to complete an exit. Publicly traded stocks are generally more liquid because they trade daily in public markets. By contrast, many alternative investments, such as Private Equity, infrastructure, or certain closed-end funds, have lower liquidity and longer investment horizons. In alternative assets, liquidity should be analyzed carefully. Some vehicles, such as Evergreen or semi-liquid funds, may offer periodic redemption windows, but these are usually subject to conditions, limits, or restrictions. Therefore, before investing, it is important to align the vehicle’s liquidity structure with the investor’s cash flow needs, investment horizon, and risk profile.

Tags: [Key Concepts] [Liquidity] [Evergreen Funds] [Alternative Assets]

Risk-adjusted return is a way to evaluate an investment’s performance by considering not only how much return it generates, but also how much risk was taken to achieve it. It allows strategies to be compared more comprehensively than by looking only at profitability. Two investments may have similar returns but very different risk profiles. For example, a strategy that generates a given return with lower volatility, a smaller maximum loss, or greater consistency may have a better risk-adjusted profile than another with the same return but greater uncertainty or dispersion of results. In alternative investments, risk-adjusted return can be analyzed using metrics such as volatility, Sharpe Ratio, drawdown, capital loss, return consistency, dispersion among managers, and comparison with benchmarks or peers. No metric should be evaluated in isolation; the key is to understand whether the return obtained adequately compensates for the risks, liquidity, costs, and complexity of the strategy.

Tags: [Key Concepts] [Investment Evaluation] [Risk-Adjusted Return] [Performance Metrics]

The performance of an alternative asset fund is typically evaluated using metrics that consider both the value generated and the timing of cash flows. This is especially important in private funds, where capital may be called gradually and distributions may occur several years after the initial investment. The most commonly used metrics include IRR, which measures annualized return considering the timing of cash flows; TVPI, which reflects total value generated relative to invested capital; and DPI, which shows how much capital has already been distributed in cash to the investor. These metrics should be analyzed together, as none provides a complete view of performance on its own. It is also important to consider the vintage, strategy, manager, risk assumed, and maturity stage of the fund.

Tags: [Investment Evaluation] [Performance Metrics] [Fund Performance]

A closed-end fund is an investment vehicle with a defined life, in which investors commit capital and the manager calls it gradually as opportunities are identified. These funds typically have long-term horizons, lower liquidity, and distributions linked to the sale or monetization of assets. An Evergreen fund, by contrast, is designed to operate continuously, without a predetermined maturity date. It generally allows periodic subscriptions and may offer liquidity windows under certain conditions. This can provide a more flexible investment experience and access to an already constructed portfolio. However, liquidity in Evergreen funds should not be interpreted as guaranteed. Redemptions may be subject to windows, limits, gates, availability of liquid assets, and market conditions.

Tags: [Key Concepts] [Investment Evaluation] [Closed-End Funds] [Evergreen Funds] [Liquidity]

Building an allocation to alternative assets requires first defining the objective that the allocation is expected to serve within the portfolio. Some strategies may be oriented toward capital growth, others toward income generation, and others toward diversification relative to traditional markets. It is also important to consider the investment horizon, liquidity needs, risk tolerance, applicable regulation, costs, internal experience to monitor these investments, and the ability to select suitable managers. An allocation to alternative assets should be built with a long-term perspective, diversification, and ongoing monitoring. The objective is not to include alternatives for their own sake, but to define the role they play within the investor’s overall portfolio.

Tags: [Investment Evaluation] [Alternative Assets] [Asset Allocation] [Portfolio Construction] [Diversification]