Annual Summary

2022 IN REVIEWGENERAL ECONOMY OVERVIEWPRIVATE EQUITY ROUND-UPROUND-UP & THE ROAD AHEADTHE QUICKFIRE ROUND

2022 IN REVIEW

2022 has been a year full of events that have affected households and businesses worldwide. Most significantly, the well-received positive sentiment from the WHO that the end of the pandemic is in sight, whereas geopolitical tensions such as the Russian-Ukraine War continue to impact the markets.

At Berkeley Assets we have concentrated on improving internal controls and embracing change, leading us to emerge from the last two years in a stronger and more customer-centric position, showing an upward trajectory of growth and increased revenue compared to 2020 & 2021.

Specifically, we have built a completely bespoke, digital and technologically advanced internal CRM system for our global teams and transferred full functionality across all departments to it. Not only does this increase data security and efficiency, but it has also enabled us to reduce the use of paper and create a more sustainable ecosystem within our offices.

Our newly developed client portal is available on both the web and mobile app. It includes an on-demand chat service, event registration, a real-time view of your portfolio, information on other services and regular news updates. In line with our ambition to be a front-runner in technology, clients can also access company information via our custom developed virtual reality system in our Downtown Dubai office.

Finally, we have taken a step back from the excessive deployment of capital into the UK and are now focusing on quality over quantity.

GENERAL ECONOMY OVERVIEW

BERKELEY ASSETS INSIGHTS

As we enter 2023, our team has looked at the most significant news shaping our economies today. Here are their top points:

Uncertainty In The UK

The rotating doors of Downing Street and turbulence in the Palace of Westminster has created a great deal of distrust and uncertainty in the British Government, further agitated by numerous policy changes in a short period. In addition:

- UK households will be paying 500% more in bills by Spring 2023 compared to pre-pandemic times.
- The knock-on impact of this political instability has created a depreciating pound.
- The bill crisis has caused further problems and created income gaps as some households are paying more than half their income on bills.

The Chinese Conundrum

China's controversial Zero Covid Policy caused a decline in GDP, though it is expected to ease in 2023 with the newly relaxed rules.

- Pre-pandemic China's economy was growing at a high rate of 8% annually. 
- The manufacturing sector dominates the economy but due to this policy, a lot of warehouses have closed. 
- China's integration with the rest of the world (it produces a third of the world’s intermediate goods) has caused other economies to struggle.
- The impact of the policy is said to have more of an impact than that of the Russian-Ukraine War.

The World At Large
Several factors have come into play in the past months which has led to an expectation of recessions hitting in 2023, namely:
- The Russian-Ukraine war has had a ripple effect across the globe; most notably the increase in commodity prices.
- Disruption to global supply chains has caused food shortages and a lack of raw materials for industry.
- Inflationary pressures have eroded wages causing a reduction in economic growth projections and forecasts.
- Business confidence was knocked causing fleeing capital, especially from emerging markets to the more developed, specifically seen in the appreciation of the US Dollar.

PRIVATE EQUITY ROUND-UP

Public markets have seen a disruptive year, with S&P 500 dropping more than 23%, causing investors to further diversify and rebalance their portfolios. However, expectations are positive for 2023 as we see the ease of volatile economic conditions and the deployment of dry powder.

Foreseeing this, the major banks have seen more opportunities in private markets as Private Equity and Venture Capital delivered more sustainable returns. Europe, Southeast Asia, Latin America, and India showed the most activity.

Following suit, investors want to place capital in private markets to avoid public market turbulence. As of now, the majority are using a wait-and-see approach; watching economies and how they behave with rising interest rates and inflation.  

The sustainability trend is likely to continue in the next five years as countries concentrate on achieving net zero emissions. This is mainly driven by tech companies, however, vintage fashion will also do well because of this.

ROUND-UP & THE ROAD AHEAD

While we may have appeared quiet, the team at Berkeley Assets have been busy in the background working on several projects that will allow you to diversify your portfolio further, protecting your placements from downturns and preserving your capital. 

- The analyst team have taken the time to research assets globally to rebalance portfolios. As a result of this, we are looking to broaden our landscape in real estate opportunities to include rising hotspots such as UAE & Saudi Arabia. The UAE & Saudi real estate markets have grown and are forecasted to grow significantly as global investors continue to pump capital into their markets. Specifically, the UAE has done well to shake off the instability of global tensions.

- We have also focused on short-term bridging and development financing opportunities with UK-based developers which will provide attractive yields over the next 6-12 months. Banks are reluctant to lend right now, but our strong reputation means developers can rely on us for their bridging requirements thus providing us with some very lucrative opportunities in the UK market. 

- In 2023 we will be introducing our new blockchain-powered tokenisation platform where clients can fractionally place capital into multiple projects and asset classes at once with full control and visibility. Access will be more simple with low capital entry requirements. 

- Our strategies of deploying capital to new territories will allow us to employ new talent in our company.  

- The launch of our new management consultancy division will provide multiple fee-based services to our existing and new clients across the UK & GCC. 

- We will reach key project milestones in 2023 which we will be reporting on throughout the year.  

- We will be entering new industries this year such as cybersecurity, robotics, and other exciting tech opportunities. Markets expanding in the tech industry are expected to have impressive ROI with workforce growth rates expected to double, driving economics in the post-pandemic era.

Because it is not all just work, work, work, we continue to build our company culture by having fortnightly sports and monthly team-building activities. We have also successfully started to bring back our events over the past 18 months with two F1 client events and multiple intimate client evenings at Coya’s private members' lounge. We will continue to stage exclusive events for our clientele to provide invaluable face time with our teams.

THE QUICKFIRE ROUND

BERKELEY ASSETS VIEWPOINT

What have the main concerns for clients been throughout 2022?

- Inflation 

- Interest rates rising 

- Recession fears

- Effects of Covid-19

What new economic and financial trends have risen in 2022 that you believe will lead the way in 2023 and beyond? 

- Preservation and capital protection is key. 

- Digital transformation for businesses.

- Alternative assets.

What were your expectations for 2023?

- Weakening economic output. Rising interest rates and international political tensions will worsen conditions for banks, insurers, and fund managers. However, the outlook for new financial challengers, including fintech and cryptocurrency sellers, is likely to be even tougher.

- Slower global economic growth.

- As central banks across the world simultaneously hike interest rates in response to inflation, the world may be edging towards a global recession in 2023, and with it a string of financial crises in emerging markets and developing economies

What were your favourite internal developments within Berkeley Assets in 2022 and what are you looking forward to the most in 2023?

2022

- Our new Brochure with up-to-date projects, products and services. 

- Impressive digital transformation of the firms’ operations internally and with clients through the introduction of the incredible CRM system and the lucrative client portal application. 

- Further team growth in both London and Dubai.

- An expanded investment mandate for Berkeley Assets to diversify and strengthen the firm's position. This will attract even more institutions and private clients.

- The broadening of investment criteria across more asset classes that will allow us to enter new territories.

- Due to demand, new services will become available from Berkeley Assets’ management consultancy division.

TO INFINITY & BEYOND!

Thank you to you and our team for a successful year at Berkeley Assets. We look forward to exciting new opportunities and experiences in 2023. Keep an eye out for updates in our quarterly newsletters.

Offshore - Multi-Asset Private Equity Firm of the Year, Berkeley Assets
Young CEO of the Year Award 2019
Achieving Women’s Award in the Private Equity Sector 2019
HomeOur FirmPrinciplesLocationsPortfolioCapital SourcesNewslettersBlogCareersTestimonialsContact
Cookie PolicyPrivacy Policy
©2017-2021 Berkeley. All Rights Reserved.
Offshore - Multi-Asset Private Equity Firm of the Year, Berkeley Assets
Young CEO of the Year Award 2019
Achieving Women’s Award in the Private Equity Sector 2019