Investing in the Future
CAELUM CAPITAL GROUP
ABOUT US
Caelum Capital Group is a Nevada domiciled Family Office specializing in wealth management for the generational wellbeing of our principals.
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Our selective investments in higher-risk but promising investments (Wealth Generation) are balanced with a portfolio of growth-stage private equity (Growth) and selected long-term stable assets and annuities (Preservation)—all skillfully managed through diversified portfolios to balance geographical, industry, company and investment product risk (Risk Management).
With an overall long-term vision, our investment philosophy emphasizes enduring principles and transition strategies that maintain a sound transfer of wealth that transcends generations (Generational Wealth Transfer).
GENERATIONAL
WEALTH
WEALTH GENERATION
Although our investment philosophy incorporates a high degree of risk management to ensure generational wealth transfer, we understand that growing wealth is fundamental to some of our client’s instructions.
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Accordingly, with varying degrees of our fund, we provide capital in selected ventures, startups and projects that have exceptional long-term growth potential, especially ventures that have grown quickly and appear poised to continue to expand in burgeoning industries—where potential for above-average return is an attractive payoff and which are professionally managed.
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Although we keep an open mind for many opportunities, currently we are focusing on real estate development and renewable energy projects in growth markets, particularly Latin America and other select countries. Other projects and ventures include high-tech, biotech, blockchain, Web3, media & entertainment, and other selected ventures in promising but nascent industries.
Industry 01
Real Estate Development
Industry 04
Industrial & Warehouse
Industry 02
Renewable Energy
Industry 03
Financial Services
Industry 05
Media & Technology
Industry 06
Blockchain & Web3
GROWTH
Within the realm of long-term capital appreciation, we strive to enhance our portfolio with minority investments in relatively mature companies that have high likelihood for growth. These companies are likely to have stability of earnings with the ability to generate increased revenue and profit but unable to generate sufficient cash to fund major expansions, acquisitions or other investments. Growth companies seek capital to expand or restructure operations, enter new markets, finance significant acquisitions or prepare for a finance a transformational event in their lifecycle, oftentimes through the use of financial leverage, structuring and value-add. Accordingly, our growth capital is typically structured as preferred equity and various hybrid securities (perhaps combined with debt vehicles) that include a contractual return, interest payments, in addition to an upside ownership interest in the company:
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Strong and Rapidly Growing Revenues
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Proven Management Teams
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Solid Company Fundamentals
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Stable Margins and Cash Flows
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Historical Stability & Projected High Growth
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Positive Cash Flow, Profitable or Approaching Profitability
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Stable Industries and Political Environments
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Risk Profile Fits with Caelum Capital’s current Investment Strategy.
Typically, with growth our investments, we select investment returns that are primarily a function of market expansion, value-add and structuring without leverage, although we do apply leverage when advantageous to our portfolio. For example, financial leverage does have value when the assets that are purchased with the debt capital earn more than the cost of debt used to finance them. Furthermore, financial leverage has additional value due to the interest tax shield afforded by tax law. In both these scenarios, the use of financial leverage increases the company’s profits. Nevertheless, if the company does not have sufficient taxable income to shield, or if its operating profits are below a critical value, financial leverage will reduce equity value and thus reduce the over value of the investment.
PORTFOLIO
MANAGEMENT
DIVERSITY & RISK MANAGEMENT
Many family offices make catastrophic mistakes with too much concentration, while others settle for average performance because of over diversification. Portfolio and risk management is paramount to our mission for the generation, growth, perseveration and transfer of wealth.
Our diversification management aims to maximize returns by investing in different areas that would each react differently to the same event. It attempts to lower the volatility of a portfolio because not all asset categories, industries, or stocks move together. It includes techniques to reduce risk by allocating investments among various financial instruments, industries, and other categories. Part of our diversification strategy for publicly traded securities is participation of non-correlated assets can reduce losses in bear markets, preserving capital for investment in bull markets.
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Overall, our preservation strategies enable us to invest a greater percentage of assets in risk assets with a diversified portfolio versus a non-diversified portfolio, as the variety of non-correlated assets tends to lower the total risk of the portfolio. Holding a variety of non-correlated assets can nearly eliminate unsystematic and specific risks, which is why managing a reasonable number of investments in different industries and companies, industries, locations and investment products minimizes specific risk. It decreases the volatility of our portfolio because different assets should be rising and falling at different times, smoothing out the returns of the portfolio as a whole.
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Accordingly, our portfolio strategy includes a wide variety of investments within a portfolio with a mix of distinct asset types and investment vehicles in an attempt at limiting exposure to any single asset or risk and constructed such that different kinds of assets will, on average, yield higher long-term returns and lower the risk of any individual holding or security.
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Although our investment philosophy does not guarantee against loss, portfolio and risk management philosophy is the most important component of reaching long-range financial goals while minimizing risk.
WEALTH PRESERVATION
With an objective for preservation of wealth, the notion of maintaining existing wealth is more important than making more money. Without a philosophy for wealth preservation, any investment portfolio is subject vagaries of market cycles, interest rates, political shifts, industry phases, and, at times, catastrophes.
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Many issues come into play with wealth preservation such as inflation, proper asset allocation and protection against capital market risk. Accordingly, wealth preservation involves estate planning strategies that help mitigate the effects of taxes, exit and succession strategies from businesses, and tax-advantaged investments that are intended to maximize income while minimizing tax burdens.
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Our wealth preservation strategies involve managing our portfolio in such a way to ensure our client’s asset value do not decrease or erode over time, where we may secure (or structure) investment assets as stable long-term annuities. Accordingly, our wealth preservation strategies incorporate portfolio and risk management as well as generational wealth transfer strategies (below).
WEALTH BUILT TO TRANSCEND GENERATIONS
WEALTH TRANSFER: FROM GENERATION TO GENERATION
At Caelum Capital Group we have an overarching long-term vision for the ongoing and sure transfer of generational wealth. Our investment management philosophy embraces sound transfers to beneficiaries through a tax-efficient manner through financial planning strategies that often include wills, estate planning, tax planning, insurance vehicles, trusts. Accordingly, our wealth transfer planning strategies include the following strategies:
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Strategies to minimize estate tax and transfer liabilities, with other income tax deferral strategies.
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Estate and Tax Planning Strategies
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Asset Planning and Protection Strategies
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Specific Document Strategies
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Gift Tax Strategies
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Using increasing and declining GRAT payments to maximize downstream wealth transfer (and easy automated provisions to use either strategy)​
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​Trust vehicles and structures that provide for sound income tax efficiencies, creditor protection with downstream wealth transfer to descendants, while allowing beneficiary/family access.
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Lifetime gifting strategies that protect family assets, such as insurance trusts, revocable living trusts, charitable trusts, annuity trusts and generation-skipping trusts.
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Effect charitable giving through charitable gift estates that benefit the family and selected charities
Overall, our role is that of a trusted advisor who adapts the estate planning process to each family and their specific circumstances and objectives.
CAELUM CAPITAL GROUP
CAELUM CAPITAL GROUP
04
Partners
06
Employees
23
Investments
100%
Success
