Growth Equity: Turns Out, It’s All About the Growth
Growth equity continues to offer investors a compelling return profile that combines the downside protection of buyouts with some of the upside potential of venture capital.
Authored by: Andrea Auerbach
Should Investors Consider Co-Investing?
Yes. At a minimum, investors should consciously consider it. The co-investment “craze” isn’t going away anytime soon—we estimate co-investing currently accounts for nearly one-third of all private investment activity—and there are structural reasons why it will continue, as we will discuss. For investors with allocations to private investments, adding co-investments offers some advantages; namely, lower fees…
Should You Avoid Commitment (Facilities)?
In short, no—their use isn’t going away any time soon. Rather than avoid them, incorporate new elements to more clearly assess the manager’s true investment skill.
Is Private Equity Replacing Public Equity?
It sure looks like it. The increasingly unforgiving nature of public equity markets, coupled with the continued evolution and growth of private investment markets, is making it easier for more companies to stay private, with some CEOs avowing to do so indefinitely.
When Secondaries Should Come First
Investors seeking to gain initial exposure to private investments should actively consider secondaries, rather than funds-of-funds, as the very first step to constructing a long-term private equity portfolio.
A New Arrow in the Quiver: Investment-Level Benchmarks for Private Investment Performance Measurement
The private equity market has evolved to become increasingly sophisticated and competitive, resulting in a profusion of specialized sub-strategies (for example, co-investing, direct investing, sector-focused strategies) and managers expanding into geographies, sectors, and/or asset classes that may be new to them and their investors. In this context, fund-level net to LP benchmarks, while still necessary, are not always sufficient to evaluate performance. This paper introduces Cambridge Associates’ Investment-Level Benchmarks and shares examples of the types of perspectives they can offer subscribers.
Are Private Equity Returns Doomed?
No. You just need to know where to look. The informed alternative investor is focused on identifying managers with the potential to outperform. Where to find these managers? The lower end of the private equity arena.
The Private Path to Latin America’s Most Dynamic Sectors
For investors seeking regional diversification and differentiated exposure to emerging markets, Latin American private equity and venture capital warrants serious consideration.
“Mind the Gap” in US Venture Capital Valuations
Venture capital offers compelling returns for the stalwart long-term investor. The most relevant question for investors in any stage of venture is the potential impact of prevailing market conditions on ultimate returns. In this brief, we look at valuation data today and also use our proprietary data set of funds to review historical returns during periods when valuations reset.
Want to Own a Previously Private Equity–Owned Company? Quite Possibly YES
Whether investors are ready to admit it or not, sponsor-to-sponsor transactions—in which one private equity sponsor sells its stake in a company to another private equity sponsor—are here to stay, and that may not be a bad thing.