NAIC's performance survey, Recognizing The Results, compared the audited financial returns of NAIC Firms against the broader private equity market using four (4) industry benchmarks for the period 1998 - 2011. KPMG was engaged to collect and compile the performance data which was then analyzed by a working group of fund of funds investors.
This study was designed to gain a thorough understanding of how an Emerging Manager Program (“EMP”) can work best and identify the ways that stakeholders can cultivate that success. We began by contacting 22 pension funds to invite their Board members and/or Investment Staff to collaborate with us on this project by allowing themselves to be interviewed about their EMP experiences.
This white paper provides an overview of best practices from some of the nation’s leading pension funds that have pioneered private equity investment with emerging managers. It analyzes and compares a few of the more successful emerging manager programs in order to identify those factors that appear critical to their success.
NAIC Member Spotlight
College Hill Capital Parters provides long-duration equity capital to company founders and family business owners who seek to retain control of their middle market companies. By providing patient and flexible equity capital with a targeted investment horizon of 10 years, College Hill Capital partners with portfolio companies provide resources to support strategies and initiatives to build equity value. Over the last 20 years, College Hill Capital founders have led the profitable startup of two middle market companies and the completion of over $2 billion of debt and equity investments yielding attractive risk-adjusted returns through several economic cycles.
HarbourVest Horizon, an experienced private equity separate account manager and adviser, focuses on meeting the targeted needs of institutional investors by investing in emerging and diverse managers in the lower middle market.
The firm provides $10-$25 million of growth capital to companies which typically have revenues of $10-$30 million and less than $3 million of EBITDA. Vicente Capital is typically non-control investors, although it has significant influence as a result of the investment documents and the board seats that it controls.
Stellex focuses on middle-market companies in distress as well as special situation opportunities across the following industries: industrial and service sectors, with emphasis on Aerospace, Automotive, Business services, Consumer products, Defense, Energy & Power, Financial services, General industrial, Government services, Infrastructure, Telecommunications & Media and Transportation.
One Rock's primary investment strategy is focused on investment opportunities where the vast majority of the anticipated value creation comes through operational changes and enhanced positioning.
Vista was founded in 2000 to pursue buyout transactions of companies in the enterprise software, data and technology-enabled solutions (collectively “enterprise software”) industries.
With its Executive Partners, Siris has significant experience in investing in complex, special situations; i.e., investment opportunities in mission critical technology companies that are undergoing fundamental changes in their manner of doing business or that are facing particularly difficult operational, strategic or financial challenges.
Founded in 2006, RLJ primarily invests in North American companies with enterprise values between $50 million and $250 million. While their target investment size is between $15 million and $30 million per transaction, RLJ Equity has the ability to pursue larger transactions in collaboration with our strategic partners.
NorthBound is the firm’s dedicated emerging manager platform within Neuberger Berman Private Equity, and was formed in 2007 as the outgrowth of an initiative focused on commercializing diversity.
ICV Partners is focused on investments in the smaller middle-market, investing in companies with revenues of $25-$250 million and EBITDA of $8-$30 million. The firm concentrates on Manufacturing, Food & Beverage, Consumer Products & Services, Healthcare, Business Services, Distribution companies within the US, Canada and Puerto Rico.
Grain Management, LLC is a private equity firm focused on investments in the communications sector. The firm manages two flagship funds for a number of the country’s leading academic institutions, endowments, and public pension funds. Grain Management also acquires, builds, owns, and operates wireless infrastructure assets across North America.
Brightwood provides flexible capital solutions to U.S. based small to medium-sized enterprises (SMEs). We develop lasting relationships with the entrepreneurs and institutions we back, helping to create long-term value. With over $1 billion of assets under management across three funds, Brightwood provides capital to SMEs.
Auldbrass Partners provides bespoke solutions for private investors. Founded in 2011 as a spinout from Citigroup, Auldbrass has offices in New York and Chicago, and assists investors with disposing or acquiring assets across all alternative classes. The Auldbrass team has proven performance at the highest level of secondary execution and strategic asset allocation.
Advent Capital Management, LLC is a registered investment advisor dedicated to providing our clients with superior investment performance. We invest primarily in convertible, high yield and equity securities offered through long only, hedge-fund and NYSE closed-end fund products. Our investment team consists of seasoned professionals performing bottom-up fundamental research.
Strategic Partners Fund Solutions is a leading investor in the secondary private equity market. Its goal is to provide individual and institutional investors the opportunity to monetize and manage their illiquid investment holdings.