Private Equity Firms with Public Investing Arms

Hi All - bit of a strange ask here. Has anyone seen a list of private equity firms (venture, growth, buyout) with public investing arms?

Would imagine KKR, BX, Carlyle all have some form of this but curious about others that people have heard of or if anyone's seen a list anywhere (did try searching...) one off comments all appreciated!

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Oct 6, 2020 - 11:35pm

They all have groups or sub-divisions that opportunistically buy up first-loss positions/equity that are publicly traded, whether it's easier to amass a position or liquidity.

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  • Prospect in IB-M&A
Oct 7, 2020 - 11:25am

Can someone explain this strategy a bit more? Do they try to take public companies private or do they just take big minority stakes and hold long term? What type of person does this appeal to/why would you choose it over a L/S fund or a PE fund? Have returns in the space been good? Any help is appreciated. 

Oct 7, 2020 - 1:58pm

It's just Opportunistic where mandate of the private equity strategy cannot touch.  Hold period depends by fund, and they're usually non-control minority passive investments. Don't think activist plays are common.

reason why people are here instead of SM l/s: 1) likely can't make it to a tiger cub... gotta be honest, this is most probable reason since comp is definitely lower 2) it's deep diligence public markets (liquidity, mark to market performance tracking, more competition, more uncertainty and risk/reward for edge) strategy infused within a PE house with all its IC processes and platform network so you get potentially best of both worlds. 

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  • Associate 1 in PE - LBOs
Oct 8, 2020 - 8:05pm

I'd agree except not sure you're right about can't get into tiger cub... Sunley house has some ex-cub guys but like I mentioned above they are unbelievably sharp

Oct 8, 2020 - 8:47pm

Are we talking about the same Sunley house? They have 12 IPs. Maybe their senior/partner levels are impressive, but the associates don't come from tiger cub backgrounds and aren't as impressive as you make them out to seem. Just clicking on their website profiles, I see that their backgrounds are consulting, IBD, and a respectable Multi L/S buy-side. That said, for a small sized team in a top UMM PE house it's expected the seniors have extreme pedigree, and Sunley House is a fairly niche space. 

Ultimately, I think these people are interested in a different style of investing than SM L/S. But I stand by my conclusion that these individuals wouldn't have secured a tiger cub job had they been interested. 

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  • Prospect in Consulting
Oct 8, 2020 - 6:12pm

Would it be correct to characterize it as something akin to a long only, concentrated hedge fund strategy with a 3-5 year time horizon on investments?

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