Esoteric & Niche Investments

There was recently an article in Bloomberg called Robots Are Eating Money Managers' Lunch that discusses "esoteric" assets, or assets without established markets where you basically need to build a business as your investment in order to access. This includes things like charter school finance, factoring payments between various entities like the Italian government and a refugee camp, and basically anything else that is non-bid, non-flow, non-market, non-auction and non-existent to Wall Street.

One step below this on the illiquidity/unconventionality spectrum are "niche" or "unconventional" assets like aircraft leasing, movie rights, drug royalties, litigation finance. While the subject of the article, Rishi Ganti, draws a fine line between esoteric assets and niche assets (which have markets), there still seems to be a sizable liquidity gap between your stocks/bonds and niche assets.

Does anyone know of any private investment firms (probably within the private equity/private credit domain) that invests in a broad swath of these types of niche assets? What about esoteric assets?

Basically, an unconstrained money manager that has the latitude and wherewithal to invest in anything unconventional. What would you even call this business model because it's not confined to any one strategy but rather can execute on any number of unconventional strategies?

It's been tough to find anything of the sort except for some family offices (long term capital, no mark to market bullshit) and some generic "private market" arms of hedge funds (like Mr. Ganti's old group at Two Sigma).

Region

Comments (10)

 
Feb 3, 2020 - 8:00am

I think a lot of firms that invest across cap structure and are generally more value oriented / opportunistic would look at these sorts of things, but wouldn't advertise it as their specialty. Would think it would be hard to generate sustainable flow of off the run stuff - just need to have flexibility when it presents itself

Array
  • 1
Start Discussion

Popular Content See all

Girlfriend vs PE
+84PEby Investment Analyst in Private Equity - Growth Equity">Investment Analyst in PE - Growth
I’ll never take WSO for granted again
+51OFFby Principal in Venture Capital">Principal in VC
What's so good about Evercore?
+41IBby Prospective Monkey in Investment Banking - Mergers and Acquisitions">Prospect in IB-M&A
I'm tired man
+29IBby Intern in Corporate Finance">Intern in CorpFin
First year analyst, still feel incompetent and like I haven’t learned anything
+21IBby 1st Year Analyst in Investment Banking - Mergers and Acquisitions">Analyst 1 in IB-M&A
Friends in IB are chilling hard, how can I get this?
+19IBby 3rd+ Year Associate in Private Equity - LBOs">Associate 3 in PE - LBOs

Total Avg Compensation

January 2021 Private Equity

  • Principal (6) $693
  • Director/MD (15) $627
  • Vice President (57) $366
  • 3rd+ Year Associate (60) $272
  • 2nd Year Associate (115) $245
  • 1st Year Associate (249) $224
  • 3rd+ Year Analyst (23) $162
  • 2nd Year Analyst (56) $139
  • 1st Year Analyst (163) $119
  • Intern/Summer Associate (17) $66
  • Intern/Summer Analyst (178) $59

Leaderboard See all

1
LonLonMilk's picture
LonLonMilk
98.5
2
Jamoldo's picture
Jamoldo
98.4
3
Secyh62's picture
Secyh62
98.3
4
CompBanker's picture
CompBanker
97.9
5
redever's picture
redever
97.8
6
frgna's picture
frgna
97.6
7
NuckFuts's picture
NuckFuts
97.5
8
bolo up's picture
bolo up
97.5
9
Addinator's picture
Addinator
97.5
10
Edifice's picture
Edifice
97.5