A native of South Africa, Dirk Coetzer is a behavioral psychologist and trade finance specialist who serves as the managing director of the Luxembourg-based company Firminy Capital. In this position, Dirk Coetzer is responsible for the oversight of a firm incorporated as a limited liability company, known in Europe as a société à responsabilité limitée (SARL).
A SARL is a commercial company that combines characteristics of a partnership with characteristics of a capital company. In this sense, the SARL adopts the concept of non-transferrable company shares from the former, and the partners’ liability being limited to the amount of capital they contributed from the latter.
In Luxembourg, any kind of company can be incorporated as a SARL with the exception of savings, investment, and insurance companies. The benefits of incorporating a company as a SARL include the ability of shareholders to establish a firm with less required capital than other types of incorporations, with a minimum share capital of just 12,000 Euros in cash or a contribution in kind in order to establish one.
There are also no stipulations on who can become a partner within a SARL. The only requirement with regard to shareholders is that there be at least two individuals involved, and no more than 100. The company must also be managed by two directors who share equal powers, and must also create a panel of directors.
Dirk Coetzer brings extensive experience in investment banking and wealth management to his role as managing director of the investment firms ICON Capital Sarl and Firminy Capital Sarl, both based in Luxembourg. As an active supporter of the European Life Settlement Association (ELSA), Dirk Coetzer is committed to a comprehensive code of practice that ensures the industry’s highest level of ethical and professional standards.
The goals of ELSA include education, promoting best practices, and research development facilitated through the following activities:
1. Creating and updating a comprehensive list of best practices and product guidelines.
2. Organizing a yearly investor conference.
3. Organizing symposiums (typically half-day) involving panel discussions and topical presentations by industry experts.
4. Collaborating with key regulators and related industry associations, including the Financial Conduct Authority, Luxembourg’s Commission de Surveillance du Secteur Financier, and the Irish Stock Exchange, on industry developments and the development of best practices.
5. Publishing documents, including research and conference presentations, of interest to the ELSA community.
Dirk Coetzer guides Luxembourg-registered Firminy Equity Fund and ICON Investments Fund, and pursues investment strategies that reflect overarching economic trends. Dirk Coetzer maintains a close watch on the latest developments in the global markets, including the effects of the Brexit vote on capital flow and investment opportunities.
Since the decision of UK voters to leave the European Union, analysts have struggled to assess the ultimate impact of the Brexit. This reflects the way in which British economic and trade interests are intricately bound up with those of Europe. As estimated by the Institute for Fiscal Studies, the permanent cost of leaving the European single-market for goods and services will be 4 percent of Britain’s GDP, or approximately £3,000 for each household, on average.
This will significantly outweigh the costs of staying in a single market, with net contributions to the European Union budget costing British taxpayers £9 billion annually. Particularly affecting UK exporters is the potential resurgence of non-tariff barriers, such as licensing, which go beyond those addressed by free trade agreements. This may make British goods significantly more expensive to continental European consumers.
An experienced financial trader, Dirk Coetzer is the managing director of Firminy Equity Fund and ICON Capital Sarl, LLC. From his office in Luxembourg, Dirk Coetzer oversees the fund’s alternative investments and securitizations.
Securitization is the creation of liquid assets from illiquid assets through a tailored financial process. The mortgage-backed security (MBS) is perhaps the most recognized form of securitization. An MBS is formed through an intricate process that begins with a financial institution (the originator) collecting mortgages secured by properties. The originator then bundles these mortgages into groups based on factors such as their level of risk, their due dates, and their remaining balances. Each individual group is then presented as collateral for an MBS. The MBS is issued by an investment bank or a regular bank, and the security is sold on the secondary mortgage market, giving it liquidity.
Creditors benefit from securitization because division of ownership reduces the associated risks of holding an MBS. Investors, on the other hand, get to diversify their portfolios and earn a return derived from both principal and interest payments on the mortgages.
The managing director of Firminy Capital Sarl, Dirk Coetzer also heads ICON Capital Sarl. Dirk Coetzer joined the company in 2006 and is responsible for fund management, particularly the ICON Investments Fund.
A mono fund, the ICON Investments Fund maintains an umbrella fund structure. An umbrella fund contains one primary mutual fund that oversees a smaller family of funds, also known as sub-funds. Similar to a family of funds arrangement, an umbrella fund allows each sub-fund to act as its own mutual fund. The same investment strategy does not have to apply to all funds in the group, which offers investors flexibility when deciding how to allocate money. Depending on the umbrella fund, the focus is on stocks, bonds, or commodities.
Traditionally, switching between mutual funds requires transaction fees associated with selling and purchasing investments. However, umbrella funds are cost-efficient and typically do not incur transaction fees when switching providers or sub-funds.
Skilled in trade and structured finance, Dirk Coetzer utilizes his experience by serving as managing director of ICON Capital Sarl and Firminy Capital Sarl, both of which are based out of Luxembourg. At the latter firm, Dirk Coetzer develops numerous sub-funds, including the Arabian Gulf Series 1 and the Brazil Bahamas Series 1.
Listed on Clearstream and other such organizations, Firminy Capital Sarl’s sub-funds keep their assets separate from the group’s other funds and sub-funds. The fund managers securitize the risks of zero coupon, bank-issued securities, project loans, and additional receivables by placing them into a single rated instrument dedicated to a sole purpose. The agency sells this instrument to institutional and corporate investors who can further its objectives.
Along with investing in specific geographical regions, Firminy Capital Sarl also maintains a Global Smart City Series 1 fund. Also found on Clearstream, this sub-fund consists of shares and medium term notes and is only available to sophisticated investors. It concentrates on securitizing risks related to development loans guaranteed by the Chinese government for purposes of building the Global Smart City. This endeavor refers to a Hong Kong holding company’s plan to produce a “Smart World” featuring a sustainable economy, environmentally clean technology, efficient mobility, and other components to make for a better life for all “citYzens.” To learn about these funds, visit firminy.eu.
Experienced financial services professional Dirk Coetzer serves as a managing director of ICON Capital Sarl and Firminy Capital Sarl. One of the major initiatives Dirk Coetzer oversees at Firminy Capital is the Global Smart City Series 1, which is a registered sub-fund operated by Firminy Equity Fund FT and held separately from other sub-funds held by the organization.
This sub-fund focuses on securities related to the Global Smart City organization in Hong Kong. This project concentrates on creating a new urban and rural city development model that emphasizes stability and sustainability, structuring city development in a way that leads to more efficient governance, consistent economic development, and clean technology. One major goal of the Global Smart Cities project is to diminish the significant gaps in wealth that occur using current social models that leave some in severe scarcity. This organization also partners with other industry leaders and government organizations on a regular basis, seeking the best possible technological and organizational solutions to the challenges faced in modern city development initiatives.