March 30th, 2020
Dear Friends, Investors and Partners of Hess Group International,
Over the past few weeks, we have often been approached about the current environment created by the COVID-19 pandemic. There have been many changes for many of us, but there has also been a huge change and impact financially. Due to the increased volatility as well as the loss on the stock markets, we would like to give you an update on how this is affecting our activities.
How has Hess Group responded to the crisis?
Our first concern relates to the safety of our friends and families as well as employees and their families, our investors and clients.
Part of our already existing way of working has been having virtual offices as our team is located in different countries and time zones. We are therefore flexible and agile and very well adapted to challenge the current environment. All of our employees work from home and are reachable as before.
While the economy could not expect the dimensions of this outbreak, our management team has implemented measures to be well-positioned even in case the downturn will extend to 2021.
Are investments into Hess Group project companies safe?
The short answer is a decisive yes. The long-term investment horizon of Private Equity inherently shields investments from cyclical fluctuations. Even if there were valuation adjustments on some Hess Group International projects, companies will create a lot of value in recovering markets. Depending on the sector, a bear market could even create additional opportunities.
The structure of being equity-financed and not being dependent on banks and lenders protect our investors’ exposure from outside influences as the direct investments do not show a direct correlation to the MSCI equity index.
When we started Hess Group International we took a fundamental decision to start every venture with our own board members’ money until it crosses the high-risk stage; and only once we are sure of its stability do we invite investors to pitch in. This easy yet effective strategy makes us a team of entrepreneurs rather than investors, who are always dedicated to finding and nurturing ideas with the most potential for success!
What comes next?
While we are hoping for a quick recovery as much as anyone else, we are preparing for an extended downturn that lasts at least to the end of the year. As a commitment to our investors, partners and the Hess Group International family we will focus in the coming weeks on the following areas, where we hope to add value and make a difference:
With Janine Hess joining as a non-executive board member as of 1st of February 2020 we focus on transparent and clear communication in times where it is of necessity to be close to our investors and business partners. Janine has a background in marketing and communications and is located in Scandinavia. One of the regions where we will expand our fundraising activities in the near future. We also gained Martin Emch as an experienced manager and expert to continue our efforts on a group level as well as bringing public project companies despite a challenging environment.
We engaged an Investor Relations team to further increase our activities on the fund-raising side to strengthen our capital structure and be prepared for a longer bear market.
Last but not least feel free to visit our website and browse your way through the topics and get some inspiration on our portfolio and projects. Reach out to us via our contact form if you have any questions or need more information.
Our philosophy – Against the mainstream
We always followed the principle to not follow the mainstream and our track record has shown that this approach has been most successful. A most recent example illustrates the following: United Global Water to fight COVID-19.
We are confident to bring the best private investment opportunities to you and reference to United Global Water Holdings which increased its valuation by +30% year to date while in the same period of time the Dow Jones lost more than -20%.
Please feel free to read more about us on our website.
Stay safe and healthy.
Rolf Hess and Thomas Stieger
Founder & Chairman and CEO
For more information, please visit our social media channel – @hessgroupinternational
For more information, please contact
Media / Investor Relations
Hess Group International
Address: J/F Kennedy Street 6
3106 Limassol, Cyprus