If the majority of what they do is secondaries (whether GP led or LP led) and minority growth investing then all of this more of an LP / FOF feel to it because there is a GP there that is in the driver seat. Likewise when they are lending to a company.
I think of special sits as more debt for control, workout situations in a PE context. So very active / hands on driving value so I wouldn’t think that label works.
Definitely cool from a breadth of opportunities you get to look at, but I wonder how they can remain competitive across all these niches over time? Investing, as it grows more competitive, tends to specialize you on 1 to 2 (maybe 3) areas that you have to know cold to be competitive (whether that’s the m&a process, an industry eg enterprise software, or an ecosystem like early stage VC in the Bay Area) - you find your lane and stay ahead of the competition by getting really good at it. My challenge with broad, do-everything mandates is that you end up being a participant in everything but a master of none. Just my thoughts based on what I’ve seen having worked in generalist PE, vertical focused PE, and founding my own co.
In the hedge fund world I think Baupost and it’s Cubs have truly do anything mandates. Third Point may as well (not sure if there are limitations on certain exposures), and surely some others. It’s quite rare though. Most funds have equity/debt limitations, and/or geographic constraints.
I'd agree. Most multi-strategy funds can pretty much do anything, especially if you're including the illiquid sleeves. Farallon, Citadel, Tudor, etc. will invest across asset classes, geographies, etc. Some are doing privates, some aren't. There are a multitude of funds out there that have less restrictive mandates.
That said, I think what op is describing is different. AUM here is smaller and the individual investment professionals appear to have the ability to be a generalist/invest across a range of transactions. At any of the Baupost/Baupost cubs/other multistrats, teams are often segregated by asset class/liquidity/geography (public debt/private debt in Europe, Asian public equities etc.). If your goal is really to do anything, working at a family office is probably the one place where you can truly, in select cases, have a completely unconstrained mandate. For the fund discussed, I would be surprised if the LPs there weren't all family offices. It's highly unlikely institutional LPs would back that strategy for the reasons that kuf135 cited... most institutional LPs want their managers to do one thing and to do it well.
Distinctio nam quia dolorem rerum fugit in. Doloremque officiis voluptatibus culpa libero. Ratione sequi voluptatem veniam maxime. Laboriosam et esse nostrum possimus vitae.
Quidem nobis amet recusandae incidunt placeat. Sit iusto ducimus perferendis. Quod dolorem amet vitae molestiae omnis maxime quaerat.
Nihil omnis dolorem voluptas incidunt quia ipsum perspiciatis. Beatae sed voluptatum deserunt maiores. Asperiores cupiditate commodi quo ea modi at commodi. Ut fugiat iste eos incidunt. In non accusantium at in et quia aliquam. Numquam et quod sapiente quo est veniam.
Deserunt ipsum eligendi asperiores ratione sit odit. Fuga esse cupiditate odio quidem sed modi ut. Enim aut velit ut amet consequatur. Dolores amet corrupti enim doloribus corporis. Placeat repudiandae omnis iure quo et asperiores ut nesciunt. Possimus omnis et at enim nihil ut fugiat. Alias quod quae fugit eos odit fuga.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
Sorry, you need to login or sign up in order to vote. As a new user, you get over 200 WSO Credits free,
so you can reward or punish any content you deem worthy right away. See you on the other side!
Can’t think of anyone exactly with this scope but there are secondary funds and fund of funds with similar strategies.
Also, there is likely to be debt in place at the portfolio company level when buying secondaries.
Dhcuhehxhxhdujsnxndjwiwiisieieieeidujcjcjejjejeww8djjdjdjdjdjdjjdjdjxjxjdjxjjdjxjdjdjjdjdjdjdjjdjdjdjdjd
Yes, definitely interesting strategy.
If the majority of what they do is secondaries (whether GP led or LP led) and minority growth investing then all of this more of an LP / FOF feel to it because there is a GP there that is in the driver seat. Likewise when they are lending to a company.
I think of special sits as more debt for control, workout situations in a PE context. So very active / hands on driving value so I wouldn’t think that label works.
Is this Beach Point?
Dhcuhehxhxhdujsnxndjwiwiisieieieeidujcjcjejjejeww8djjdjdjdjdjdjjdjdjxjxjdjxjjdjxjdjdjjdjdjdjdjjdjdjdjdjd
Can you pm? Sounds like sixth street
Definitely cool from a breadth of opportunities you get to look at, but I wonder how they can remain competitive across all these niches over time? Investing, as it grows more competitive, tends to specialize you on 1 to 2 (maybe 3) areas that you have to know cold to be competitive (whether that’s the m&a process, an industry eg enterprise software, or an ecosystem like early stage VC in the Bay Area) - you find your lane and stay ahead of the competition by getting really good at it. My challenge with broad, do-everything mandates is that you end up being a participant in everything but a master of none. Just my thoughts based on what I’ve seen having worked in generalist PE, vertical focused PE, and founding my own co.
How big are they and how long is the track record? IRR can be misleading for newish secondary funds
Dhcuhehxhxhdujsnxndjwiwiisieieieeidujcjcjejjejeww8djjdjdjdjdjdjjdjdjxjxjdjxjjdjxjdjdjjdjdjdjdjjdjdjdjdjd
In the hedge fund world I think Baupost and it’s Cubs have truly do anything mandates. Third Point may as well (not sure if there are limitations on certain exposures), and surely some others. It’s quite rare though. Most funds have equity/debt limitations, and/or geographic constraints.
I'd agree. Most multi-strategy funds can pretty much do anything, especially if you're including the illiquid sleeves. Farallon, Citadel, Tudor, etc. will invest across asset classes, geographies, etc. Some are doing privates, some aren't. There are a multitude of funds out there that have less restrictive mandates.
That said, I think what op is describing is different. AUM here is smaller and the individual investment professionals appear to have the ability to be a generalist/invest across a range of transactions. At any of the Baupost/Baupost cubs/other multistrats, teams are often segregated by asset class/liquidity/geography (public debt/private debt in Europe, Asian public equities etc.). If your goal is really to do anything, working at a family office is probably the one place where you can truly, in select cases, have a completely unconstrained mandate. For the fund discussed, I would be surprised if the LPs there weren't all family offices. It's highly unlikely institutional LPs would back that strategy for the reasons that kuf135 cited... most institutional LPs want their managers to do one thing and to do it well.
Dhcuhehxhxhdujsnxndjwiwiisieieieeidujcjcjejjejeww8djjdjdjdjdjdjjdjdjxjxjdjxjjdjxjdjdjjdjdjdjdjjdjdjdjdjd
Distinctio nam quia dolorem rerum fugit in. Doloremque officiis voluptatibus culpa libero. Ratione sequi voluptatem veniam maxime. Laboriosam et esse nostrum possimus vitae.
Quidem nobis amet recusandae incidunt placeat. Sit iusto ducimus perferendis. Quod dolorem amet vitae molestiae omnis maxime quaerat.
Nihil omnis dolorem voluptas incidunt quia ipsum perspiciatis. Beatae sed voluptatum deserunt maiores. Asperiores cupiditate commodi quo ea modi at commodi. Ut fugiat iste eos incidunt. In non accusantium at in et quia aliquam. Numquam et quod sapiente quo est veniam.
Deserunt ipsum eligendi asperiores ratione sit odit. Fuga esse cupiditate odio quidem sed modi ut. Enim aut velit ut amet consequatur. Dolores amet corrupti enim doloribus corporis. Placeat repudiandae omnis iure quo et asperiores ut nesciunt. Possimus omnis et at enim nihil ut fugiat. Alias quod quae fugit eos odit fuga.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...