Anyone looked into this or think is worthwhile?

Figure I got retirement covered so wondering what do do with a little extra cash

I've looked at it in the past and didn't see a reason to look deeply. They have scaled massively between 2018 and 2020. The timing of that coupled with COVID imapcts to markets means they aren't mature enough to evaluate performance yet. At this new scale (like 20x over early funds), it is early to evaluate operational effectiveness.

One thing that really stood out to me was cost. 2/20 is a typical structure, but there has been compression on that over the past 15 years. Many funds are lower on either mgmt fee or the profit participation now. With this being a very active player, not an established successful one, that strikes me as strange.

Further, I believe they collect a present value of the mgmt fee up front for the expected life cycle of the fund. If correct, that is a massive amount of money not getting invested, greatly exaggerating the J-curve in a negative way.

One thing I'm curious about, but never bothered looking into is if each school's fund co-invests with the others, or if they are truly separate portfolios. My suspicion is they have a high degree of overlap and the unique nature of each school fund is not much more than a marketing angle, or maybe a little seasoning in the portfolio composition. Could be completely wrong on this part.

thank you...I am totally not super savvy so your insight is very helpful. I was suspecting there is some kind of marketing element to these that might not make it the best opportunity around.

I'd be worried that they're doing some fund to fund and getting double promoted.

You're right on the mgmt fee and 2/20 thing. That's a big capital call for covering who knows how much actual payroll/fund operation costs, especially how young the fund is. That 2% should be getting netted with monitoring fees but those may not be getting charged to the portcos if they're startup/venture and pre-revenue.

The deal market is very volatile right now. Industrials are seeing activity but, after sitting with 20+ PEGs this week, deal flow in many markets is way down.

To everyone else, this can be a great way to really build some wealth if you get in at the ground floor in a successful PEG. This asset class has become way more common and accessible over the years and hence drives returns down due to competition.

I'd be curious to know the chops of their deal teams.

Casey TableTennis said:

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I've looked at it in the past and didn't see a reason to look deeply. They have scaled massively between 2018 and 2020. The timing of that coupled with COVID imapcts to markets means they aren't mature enough to evaluate performance yet. At this new scale (like 20x over early funds), it is early to evaluate operational effectiveness.

One thing that really stood out to me was cost. 2/20 is a typical structure, but there has been compression on that over the past 15 years. Many funds are lower on either mgmt fee or the profit participation now. With this being a very active player, not an established successful one, that strikes me as strange.

Further, I believe they collect a present value of the mgmt fee up front for the expected life cycle of the fund. If correct, that is a massive amount of money not getting invested, greatly exaggerating the J-curve in a negative way.

One thing I'm curious about, but never bothered looking into is if each school's fund co-invests with the others, or if they are truly separate portfolios. My suspicion is they have a high degree of overlap and the unique nature of each school fund is not much more than a marketing angle, or maybe a little seasoning in the portfolio composition. Could be completely wrong on this part.

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That was my take exactly

They reached out several times

It seemed they took expenses early so less of my money actually deployed