Private equity investment services and solutions

We harness our global footprint and strong relationships across asset classes to identify private equity fund managers aligned with your objectives. As advisors or as allocators, we work with a wide range of investor types including pensions, not-for-profits, wealth managers and insurers. Whether you are building your private equity investment portfolio for the first time or looking to adapt an already established portfolio, we can steer your strategy and help you position your portfolio for potentially favorable outcomes.

Seeking favorable returns through private equity investment

Private equity has a history of performance that often exceeds 8% return per annum, making it an attractive asset class for investors. It encompasses a large ecosystem of investment opportunities around the world, covering more companies listed than equities. Some distinct strategies uniquely exist within the private equity market, including early-stage venture capital and corporate turnarounds.

Building a private equity portfolio is very different from building a traditional portfolio. It's a long-term process implemented over the life of a portfolio. Consistently refreshing a portfolio with new commitments is resource intensive. Good relationships with private equity managers is a critical component of a successful private equity investment. As an experienced advisor and implementator, we connect clients with general partners and enable new limited partners to build their portfolios on a solid foundation.

Potential benefits of private equity investment

  • Higher returns due to market inefficiencies
    Private equity markets tend to be more inefficient than public equity markets, particularly for small to medium organizations. Private equity firms can take advantage of the mispricing that exists and potentially earn higher returns.
  • Expanded universe of investment opportunities
    About 99% of midsize organizations are not traded on listed equity markets and only 3% are owned by private equity firms1. Private business therefore represent a significant opportunity for investors.
  • An illiquidity premium
    A lack of liquidity in private equity markets (in comparison to public markets) provides an upside for investors in the form of an illiquidity premium. Those who deploy capital to private equity may potentially earn higher returns as a result.

Five steps to define your private equity investment strategy

The diversity of private equity styles and strategies means you can tailor a portfolio to your organization’s risk profile and return targets. However, this entails more than simply picking sectors and managers. There are several important steps you must consider as you define your private equity investment portfolio.

Private debt requires a longer-term commitment. You should be prepared to commit capital over several years, with the flexibility to alter your plans as circumstances change. We can help you set out a multi-year capital commitment strategy that fits in with the rest of your portfolio, while also allowing you to build a diversified private equity portfolio.

Private equity is a long-term commitment that requires a detailed but flexible allocation plan. It can take several years to establish a meaningful allocation as asset managers assess opportunities and conduct necessary due diligence. 

Your risk appetite will determine the kinds of asset managers, strategies and sectors you should explore. For example, a low-risk approach may involve a focus on mainstream large-cap funds, whereas a higher-risk approach may involve more venture capital investment.

It's not uncommon for managers to offer new funds to trusted investors who they have existing relationships with. Therefore established manager relationships are critical when sourcing private equity opportunities.

Due diligence is another important step. There are limited opportunities to make changes after your initial private equity transaction. This means it is vitally important to undertake due diligence on operational, legal and tax issues before making a commitment.

We have longstanding relationships with a multitude of highly rated managers. We also keep these managers under regular review. We can help you carry out the required due diligence fully and efficiently.

You should consider your diversification strategy carefully, as private equity managers typically hold fewer companies in their funds than listed equity managers do. The number of managers you select influences other factors, including the internal and/or external resources you may need to build and oversee your portfolio. This is important for diversification, alongside other issues such as cost management and resource allocation.

Different managers and funds have varying minimum investment levels. Understanding what these are and when they are likely to be needed will help you design your capital commitment plan. These levels will also play a role in securing your relationships with managers, since these managers will rely on you to have the right amount of capital available at the right time.

Once you implement your strategy, it’s vital to monitor your underlying investments and ensure your portfolio is on the right track. Assessing your liquidity budget and commitment plan on an ongoing basis will help keep your strategy and target allocation in line with your desired position.

Our dedicated team can help you construct an effective governance plan as our manager researchers keep up to date on managers and strategies. We will continuously update you on the latest developments to keep you ahead of the game.

Uncovering opportunities in private equity

We have a long history of working with private equity asset managers around the world. This means we can link you to strategies some other firms simply can’t access. We can also help you structure your portfolio to diversify across strategies, managers, vintages and geographies.
  • Secondaries

    The private equity sector has a well-established secondary market. We can help you identify opportunities in mature private companies.
  • Venture capital

    At the smaller-cap end of the private equity spectrum lie opportunities to harness high growth potential, while supporting innovative businesses and start-ups. Contact us to find out more.
  • Co-investments

    For large, sophisticated investors, making co-investments with trusted managers can help fine-tune exposures and enhance a private equity portfolio.
  • Impact investing

    We can help you source private equity opportunities to deliver on your impact investment goals.
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