Market Opportunity & Strategy
Co-invest alongside well-established and successful private equity and leveraged buyout firms.
- It has been reported that larger private equity and buyout firms have on average provided an annualized return on investment of 22.5% over the last 3 years and 13.2% over the last 5 years and, as compared to the S&P 500, which has provided a 14.4% and 0.5% return over the same periods.
- Buyouts are larger and private equity and buyout firms are actively seeking co-investors to allow them to take advantage of large opportunities which they are unable to do on their own because of deal size commitment and/or diversification limitations. Very few firms want to invest $1B or more of their funds in any one transaction, irrespective of the size of their funds.
- Well established private equity firms increasingly are seeking an equally well capitalized Co-Investment Partner of Choice that can invest significant capital and whose principals are known to them - a Dependable Partner of Choice. This is in addition to any co-investment rights offered by the sponsors to their own investors, which are derived from the sponsors share after allocation to institutional investors or co-investors such as the Partnership.
- The Partnership, together with its co-investors, will be able to timely commit substantial capital (upto $150 million) to identified and selected opportunities.
- The Partnership will invest in deals on an opportunistic basis using the substantial private equity experience of its Investment Committee (which collectively has over 75 years of experience in sourcing, analyzing, structuring, buying and selling companies), and independent due diligence to pick the best among available investment opportunities. Because of the network and access of Mr. Norris and Mr. Paperin and the other members of the Investment Committee to most of the private equity and buyout firms throughout the world, the Investment Committee will be able to "cherry-pick" the very best deals of top-tier private equity and buyout firms.
- In the current environment there are few non-competing investors able to exercise co-investment opportunities and invest $50M or more in a timely manner.
- The Partnership will not originate investments and accordingly will not "compete" with sponsoring private equity and buyout firms and thus will be more attractive as the Co-Investment "Partner of Choice" of those firms.
- In addition to the Investment Committee's own "due diligence" the Partnership will have access to the comprehensive "due diligence" already performed by the sponsoring private equity or buyout firm. Therefore, on every investment made by the Partnership, two extensive analyses will have been done, (I) reducing risk, and (ii) enhancing the likelihood of investment success and substantial returns.
Strategy
Investment Criteria
