Baragaño Capital, an alternative investment consultancy, works with portfolios from 20,000 euros. It offers clients in Spain (residents, non-residents and Spaniards living abroad) information on traditional investments and on investments based on the real economy, but outside the traditional banking circuit.
Why are more and more private investors choosing this model? Here are the details.
What are alternative investments and why do they compete with banks?
Alternative investments are operations based on tangible assets that do not go through banks or insurers. This means they sit outside the traditional financial circuit and, in addition, seek to break away from a model they consider obsolete by not depending on those institutions.
Baragaño Capital works with a portfolio of providers of operations based on the real economy. None of those operations is its own, since independence is a pillar of its business model. Diversification is available from day one, through more than 20 operations in sectors as varied as the financing of advertising campaigns, precious metals or the sale of food products.
As Antonio Romo Baragaño, CEO and founder of Baragaño Capital, puts it: “We avoid traditional banking products and skip most intermediaries, which means investments reach the client on better terms”.
How Baragaño Capital works: support from the start
Baragaño Capital acts as a commercial intermediary between the client and the providers of alternative investment. The working process includes regular meetings and administrative support.
The team looks after most clients from its Barcelona offices. This follow-up can also be done remotely.
Clients are always shown a portfolio of different options, so that they can freely choose according to their tastes and interests.
Because saving and investment goals can change over time, clients always have the option of reshaping their strategy.
Why do traditional banking products lose out to alternative investment?
Classic banking products, such as investment funds or pension plans, start with two basic problems: long time horizons and returns that are hard to predict.
Baragaño Capital does not work with these products, since its strategy focuses on the short term, with an interest rate and a term known in advance.
The difference is measurable. Standard bank deposits in Spain sit at around 2-3% annual return.
Antonio Romo Baragaño, CEO and founder of Baragaño Capital, believes his business works when the client does well.
How much money do you need to start investing?
Contrary to what is often assumed, you do not need millions or a Swiss bank account in order to invest. Baragaño Capital works with portfolios from 20,000 euros.
Antonio Romo Baragaño, CEO and founder of Baragaño Capital, argues that “in investing it is very important to diversify”.
Clients do not need to be experts or have prior investment knowledge, as the technical teams make sure everything is explained clearly.
Baragaño works with a wide range of profiles when it comes to investment opportunities, from young professionals to savers with more experience.
What they have in common is the need to look for a safe alternative rather than leaving their capital sitting still in the bank.
The numbers behind Baragaño Capital's model
Its growth comes from word of mouth, a particularly valuable form of recognition in a sector built on trust.
The rule the team repeats as a founding principle is that it does not offer products its own members would not invest in.
Since zero-risk investments do not exist, clients need to know the success rate of each operation.
As long as inflation keeps rising across the eurozone, driven by energy costs and the geopolitical situation, alternatives to leaving money in the bank will continue to gain ground.
*Disclaimer: All investment carries the risk of capital loss and lack of liquidity.
**Past performance does not guarantee future returns. Operations not covered by article 2 of the Spanish Securities Market Act (LMV).
