Private Equity, Real Estate and Global Infrastructure
The investment activities of private equity firms encompass every aspect of the lifecycle of an organization, ranging from start-ups to mature businesses. There are three general types of private equity: venture capital, mezzanine, and leveraged buyouts (LBOs). The goal of private equity investing is to generate substantially greater returns than the long-term historical equity markets, enhancing overall portfolio performance. Achieving such performance comes at a price: higher levels of risk and very limited to no liquidity. Most private equity pools require long investment horizons (at least five to seven years) and do not provide positive cash flow in the early years of the investment. Within this broad spectrum of private equity, there is a great deal of specialization among firms, as well as extreme disparity among Private Equity managers’ performance. As a result, we work with clients to build a diversified portfolio with different managers and diverse strategies suited to their needs.
As investors build programs to harness some of the benefits of private equity investing, QMS Advisors strives to educate decision makers about the appropriate uses and potential risks of the asset class. In addition to general education, QMS Advisors works with clients to devise plan structures that diversify their programs by style, vintage year, and manager, utilizing both funds-of-funds and direct partnership investments.
Upon this foundation of education and plan design, QMS Advisors works with clients to mitigate the J-Curve effect associated with ramping up a fund’s allocation into the asset class.
Real Estate and Global Infrastructure