Private equity is an asset class where an experienced, disciplined approach is required in order to achieve consistent performance. Structured with long investment and realization time horizons, private equity investments are generally illiquid, have lower volatility than public stock markets, and are relatively uncorrelated with many other asset classes.
Benefits of Primary Fund Investing
We believe investing in a well-diversified portfolio of private equity funds has the potential to meaningfully out-perform some public equity markets over the long term. We believe that diversification – across vintage years, geographies, sectors and managers – is a key mitigating factor to the illiquidity risk in private equity. Prudent diversification can potentially reduce the risks associated with investing in any single manager or vintage year, while delivering attractive, risk-adjusted returns across economic cycles. Our primary fund-of-funds programs can serve as stand-alone private equity exposure or as a baseline core holding against a select group of direct manager relationships.
We build high-quality portfolios of primary investments through an approach anchored on a platform of relationships with top-tier fund managers. We focus on not only understanding managers’ prior performance, but also on how they have created value in the past, how likely they are to continue delivering value, and how deep and stable the team is going forward. Assessed from both qualitative and quantitative perspectives, these managers are active across the buyout, venture capital and special situations sectors. Key characteristics of our approach include the following:
- Diversified Exposure: Our fund-of-funds offers diversification across strategies, managers, geographies, vintage years and industries.
- Longstanding Relationships: The Portfolio Advisors platform provides access to specific best-in-breed managers and oversubscribed established funds, and the ability to build new relationships.
- Access to Specialists: Our platform provides access to funds with particular expertise in certain private equity sectors, industries, geographies and strategies.
- Experienced Team: Our senior investment management team has worked together through multiple economic cycles, and averages 20 years of relevant experience.
- Menu-driven Structure: Clients are able to customize their allocations across a variety of sectors and classes, or choose our recommended model portfolio.