In a lower interest rate environment and with lower returns from listed assets, private equity investments have the potential to reward investors with higher returns. Private equity can, however, carry higher risk than listed investments. This can be due to individual characteristics of private companies as well as the absence of a liquid market for these companies.
Our investment approach helps mitigate these risks through diversification. We recognise that investors want to access higher returns offered by the asset class, without sacrificing a significant portion of their risk budget.
Our solution is to assemble a distinct portfolio of carefully selected private equity investments, accessible to investors through an appropriate vehicle. Such a portfolio can contain numerous funds and/or co-investments, with many private companies as part of its underlying investments, thereby delivering a suitable level of diversification in order to reduce risk.
Our selection process emphasises multi-layer diversification to various portfolio features such as geography, fund manager, vintage year, industry sector, company size and type of deal (buyouts, development capital or venture).
Our established operation provides investors with access to private equity funds, where the single investor’s commitment may be too small for a specific fund to consider, or where the fund is closed to new investors due to outstanding interest as a result of past success.