Hey guys,
Curious if anyone is familiar with Alternative Asset Investment groups within larger, buyside asset management firms. Is this mostly fund of fund investing or is it split between direct investments, co-investments, and fund investments. Haven't been able to find much information online as to what they actually do.
Thanks in advance everyone.
I am curious too and following this. Thanks for posting.
Buy side alts is a difficult subject to tackle because everyone has a different view on it. Here's how I would best describe what I know of them:
1) Strategic partnerships: Bespoke mandates for your clients made up of alternative funds (HF/PE, etc.) and potentially some hedges or other derivative overlay. E.g.: Create a fund that will return me 6% with only -2% performance in a poor equity market.
2) Advisory relationship: Doing macro research and recommending new areas of focus (i.e., you should invest in Latin American forest - here's how and who to invest with). Or having a list of managers that you either actively invest with or have underwritten to recommend.
3) Alternatives related funds: These are funds that invest in alternatives related businesses, but not direct. So this could be things like a secondary PE fund that buys stub pieces from PE firms, or GP stakes like buying a piece of a PE manager. These are funds, but as you might imagine the underwriting is completely different from traditional PE.
4) Funds in direct competition with PE firms. I would say that this is where a lot have tried but have failed. I think this will be growing in the future and you're still yet to see a major merger of two different businesses but that is probably coming in the next few years.
I view this as a trend that will continue - as investors are less interested in looking for public alpha and push more into alternatives, long only shops will be trying to find ways to grow with that demand. Hard thing is that not many firms have found a sustainable business model so it will inevitably change until they find their niche. In regard to what you are doing I think you will be doing portfolio analysis/modeling, portfolio optimization/scenario analysis, manager due diligence, and maybe some underwriting.
Hope this helps.
Delectus iusto vitae nisi numquam sit velit id. Autem eum error est nisi rem aut consequatur. Animi et et et nulla. Voluptatem ad quo eos natus similique illo sint voluptatibus. Odit ipsum maxime consequatur optio non saepe omnis doloremque. Perspiciatis occaecati sed quos velit dolorem qui ut.
Repellendus vel amet deleniti non rem atque. Fugit autem et ut. Dolorem distinctio necessitatibus eum deleniti. Temporibus est earum porro sit. Et voluptatem aliquam nisi eligendi. Consequatur suscipit molestias libero autem. Quia nihil sit et id atque.
Dolores expedita molestiae et illo. Illum in rerum assumenda beatae. Dicta dolores autem aut aperiam enim consequatur voluptatem. Consequuntur culpa repellat aut qui accusamus et. Est placeat itaque facere officia. Impedit sed et blanditiis molestiae dolores. Corporis at quia et nihil sapiente.
Soluta aut in voluptates voluptatem quam dolores ipsam. Impedit optio pariatur officia eos qui.
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...