The Pragmatics of Private Markets Investing

Abstract

The author shares perspectives and lessons learned from four decades of experience in private markets investing.

TOPIC: Manager selection

Key Findings

• • Private markets investing is business investing, and you need to focus on the quality of the business approach in creating a strategic advantage in the markets served.

• • Private markets investing is a hiring decision, and you need to assess the quality of the organization under consideration for a strategy. Management should be expected to demonstrate an ability not just to remain healthy but to grow and improve through the tenure of your relationship with them.

• • Managing cost of fees is important, but not sufficient to ensure success. Alignment of interest across a range of outcomes, not just the upside, should be given paramount importance in partnership structuring.