Introduction
When thinking about investment risk in the context of Africa, most people envision the challenges of bringing money into the continent: weak currencies, illiquid markets, political instability, and underdeveloped legal systems. However, African investors looking to invest abroad, particularly in offshore markets, also face their own set of challenges. Addressing these risks and providing clear solutions, particularly in private markets, is the focus of the new partnership Caravel Partners Zambia and Kingsbury & Partners, based in Dubai.
In this article, we explore the foundations of this partnership and how both Caravel Partners and Kingsbury & Partners hope to bring a new standard to the offshore market.
What is Investment Risk?
Investment risk can be defined as the probability or likelihood of occurrence of losses relative to the expected return on any particular investment. It encompasses various factors, including market volatility, economic changes, political instability, and company-specific events that can affect the value of assets. Understanding investment risk is crucial because it helps investors make informed decisions, weighing potential rewards against possible downsides.
The State of Play in Offshore Investments
Caravel Partners Zambia, led by Ben Carter, seeks to expand its presence across Africa. With nearly three decades in offshore wealth management, Carter has seen the need for change. As Managing Director of Caravel Partners Zambia and Chairman of the Group’s holding company, Caravel Partners Ltd., he understands the complexities African investors face when navigating offshore investments.
“The offshore industry in Africa is way behind the times,” Carter says. “Investment advisors often lack the necessary experience, leading to situations where they market assets without fully understanding the associated risks. This begs the questions how can any investor make an informed decision if their advisor doesn’t grasp the risk factors?”
Carter highlights other issues: inadequate financial planning, poor matching of investment solutions to client needs, and subpar client reports. Outdated and costly investment platforms only add to the problem. However, what concerns him most is the lack of clarity around risk and reward—essential elements for effective investment planning. This gap has left investors without a clear understanding of the risk-reward profiles of popular fixed-income ‘Alternatives.’
Recognising these issues, Caravel Partners became the first offshore wealth advisory to collaborate with Kingsbury & Partners, a Dubai-based firm known for its innovative approach to risk management and investment reporting. Kingsbury’s Product & Risk Committee conducts thorough risk analyses of alternative assets, helping advisors and investors understand the true risk-reward profiles.
A Partnership for Innovation and Risk Management
The partnership between Caravel Partners and Kingsbury & Partners aims to reframe the discussion around the risk-return of private market opportunities. Kingsbury & Partners provides comprehensive support in risk management, innovation, and reporting for private credit opportunities. As private markets grow in popularity, so do the associated risks. Without proper guidance, investors can find themselves in complex arrangements where risks are poorly identified, miscommunicated, or hidden altogether.
“Our goal at Kingsbury & Partners is to cut through the confusion and give clients the tools they need to make informed decisions,” says Kingsbury’s Managing Partner, Ben Rockell. “Private markets offer tremendous opportunities, but they require careful navigation. Too often, the risks are obscured, leaving investors vulnerable. We aim to provide clarity and deliver opportunities with excellent risk-adjusted returns.”
Kingsbury’s governance framework is designed to bring transparency to private investments, empowering advisors to present detailed, accurate information to their clients. This aligns with Caravel Partners’ vision of modernising the offshore wealth management industry across Africa, making it safer and more accessible for investors seeking offshore opportunities.
Conclusion: A Firm Hand, Clearer Guidance
By focusing on innovation, transparency, and rigorous risk management, we aim to set new standards for the industry. With Caravel’s local expertise and Kingsbury’s global reach, this collaboration seeks to build trust and confidence among African investors looking to explore offshore opportunities.
If you are exploring private market opportunities reach out to us at hello@kingsburyandpartners.ae or contact Caravel Partners for comprehensive wealth management in Africa with the details below.
Contact details:
Benedict Carter | Managing Director
Website: Caravel Partners Zambia
Email: benedict@caravelpartners.net
