Balanced Growth Fund: Managing Risks for Long-Term Stability

Balanced Growth Fund (BGF) has built its 2030 strategy on growth and innovation, but at the heart of our model is a disciplined approach to risk management. By combining diversified asset classes, flexible investment structures, and active oversight, BGF ensures that investor capital is protected while projects and ventures are given the best conditions to succeed.

Two Non-Correlated Verticals: Real Estate and Venture Capital

BGF’s portfolio is built around two distinct verticals: luxury hospitality real estate and technology venture capital. These asset classes are intentionally non-correlated. While real estate provides stability through tangible, income-generating assets, venture capital offers high-growth potential from innovation and disruption. This balance creates resilience across market cycles, reducing exposure to systemic risk in any one sector.

Flexible Subscription and In-Kind Investments

To ensure projects are delivered according to plan, BGF often allows project owners to contribute through subscription models or in-kind investments during the first one to three years. This ensures alignment of interests, strengthens local commitment, and creates a safeguard against delays or mismanagement in the early critical phases of development.

Active Due Diligence and Continuous Monitoring

Every BGF investment undergoes rigorous due diligence, assessing not only financial metrics but also operational structures, regulatory environments, and geopolitical risks. Once invested, we maintain active oversight through continuous reporting and performance monitoring, enabling early intervention if risks arise.

Geographic and Market Diversification

By investing across Europe, MEA, the Balkans, emerging markets, and island nations, BGF spreads exposure across different demand drivers and political contexts. This diversification helps balance regional risks such as regulatory changes, economic shocks, or geopolitical disruptions.

Guaranteed GOP / AGOP from Operators

Where possible, BGF structures deals with operators who provide guaranteed Gross Operating Profit (GOP) or Adjusted Gross Operating Profit (AGOP). This contractual safety net ensures predictable cash flows and reduces operational risk for investors, while incentivizing operators to deliver consistent performance.

Data-Led Selection of Hospitality Assets

Hospitality investments are selected based on industry-leading STR data, focusing on markets with the highest occupancy and Average Daily Rates (ADR). This evidence-based approach ensures that capital is deployed in destinations with proven demand, while additional preference is given to operators willing to provide performance guarantees.

Venture Capital: Fixed Exits and Proof of Market

In the venture capital vertical, BGF reduces risk by structuring investments with fixed exit strategies, ensuring a clear and time-bound path to liquidity. We focus on companies with EBITDA between €5–10 million, selecting only ventures that have demonstrated proof of market and a sustainable growth model. This discipline allows us to capture upside potential in technology and AI while protecting against early-stage volatility.

Strong Operator Partnerships

In hospitality real estate, BGF prioritizes projects with established operators or strong brand partners. This reduces operational risk, ensures high-quality execution, and provides proven systems for revenue management, marketing, and guest experience.

Scenario Planning and Liquidity Reserves

Recognizing the potential for geopolitical volatility over the next decade, BGF employs structured scenario planning to stress-test projects under different conditions. In parallel, liquidity reserves are maintained to provide flexibility in responding to market shocks, refinancing needs, or opportunistic acquisitions.

Conclusion: Risk as a Strategic Advantage

Risk management at Balanced Growth Fund is not about avoiding risk—it is about structuring it. By combining non-correlated verticals, flexible early-stage participation, geographic diversification, guaranteed operator performance, data-led asset selection, and disciplined VC entry and exit, BGF transforms risk into a strategic advantage. This disciplined model allows us to protect investor capital while creating the conditions for long-term, resilient growth across both real assets and innovation-driven ventures.