Firstly, we work with clients whom have Private Market’s asset positions that they wish to diversify their investment portfolio via our managed accounts strategies . We are often tasked with finding multiple solutions in order to ensure the correct diversification strategy. We work with a network of contacts around the globe, including funds, secondary investment companies, investment banks and brokers to assist in achieving the best solutions for our clients.
Secondly, as part of our arrangement with clients we are given the opportunity to diversify their managed account to achieve alpha. Our analysts are constantly looking for the next trend or opportunity which has the characteristics to provide exceptional returns for our clients.
The following is an overview of the areas of the private market that we target:
Targeted Areas
Strategies
J-Curve Mitigating Strategies
J-Curve Mitigating Strategies
A broad range of private market sectors are targeted including Buyouts, Growth Equity, Venture Capital, Secondaries and Infrastructure.
J-Curve Mitigating Strategies
J-Curve Mitigating Strategies
J-Curve Mitigating Strategies
We continue to target strategies which can lower the risk profile of our clients and offer maximum return. This includes secondaries and other special situation strategies.
Investment Size
Investment Size
Investment Size
We favour Small and Midcap opportunities, which we expect to outperform the larger cap end of the market and are where we believe there are near term opportunities.
Geographies
Investment Size
Investment Size
We invest globally, with a focus on areas of exponential growth in Asia and Africa. Developed markets are generally more mature private markets that involve lower risk than Emerging Markets but also offer less return. Our risk management strategies for Emerging Markets help mitigate the risk whilst achieving the enhanced return.
Risk Management
We manage risk in the private markets through a combination of in-depth due diligence, portfolio structuring techniques and active portfolio monitoring.
Due Diligence:
We utilize a number of proprietary due diligence techniques designed to identify investments that involve inappropriate levels of investment risk or insufficient institutional controls. An emphasis will be placed on investments that offer superior transparency and limited (or appropriately managed) conflicts of interest.
Diversification:
Portfolio risk is always an issues, however, we seek to reduce this via a thorough appropriate diversification by size, investment stage, strategy and geography. We seek to balance the need to target the best investment opportunities with the need to maintain an appropriate level of portfolio diversification. Investments will be paced in a systematic way over multiple years to avoid inappropriate concentration of investments in any single year. Specifically we have the following approach to delivering diversification:
- Industry Concentration: Our predominant exposure is to natural resources, technology and financial services which are sectors that our team have extensive experience in.
- Fund Concentration: No single investment commitment will be greater than 20% of the invested entity.
- Vintage Year Concentration: A maximum of 40% will be committed in any single vintage year.
- Monitoring and Reporting: We conduct monitoring and reporting techniques to review portfolio risks on an ongoing basis. This will include monitoring for unexpected portfolio concentrations or manager performance issues. Quarterly portfolio reports are utilised to provide an additional level of ongoing oversight.