Family Office Solutions
We invest in private debt to access exposures that are different from those in the public fixed-income markets and offer superior risk-adjusted returns. We emphasize lending against hard assets such as real estate or contractual cashflows at attractive loan-to-value ratios, further diversifying from the corporate enterprise risk embedded in many financial assets, including equities.
Some private debt strategies offer expected returns competitive with both public and private equity, and we believe it is prudent to pursue higher returns from a diverse set of strategies, including debt.
Private equity can offer the opportunity to invest in companies at better valuations than those available in the public markets. An increasing proportion of companies’ value creation happens while they are private, making private investing an important component of the growth potential of portfolios.
We are mindful of the impact of fees and the “J-Curve” in this asset class. We find “secondary” and “co-invest” strategies can be highly advantageous in this regard, and we deploy best-in-class managers in these types of funds.
We also invest directly in companies where we think the opportunity is especially attractive. We typically invest alongside our partner managers, who are additive to our diligence and aligned with us in ongoing governance.
We source and sponsor direct real estate transactions, with an emphasis on stabilized multi-family properties in markets with good economic growth prospects. A distinctive feature of these properties is they offer attractive returns and inflation protection.
We will also invest opportunistically where we find value throughout the real estate landscape. If valuations and capitalization rates are not attractive relative to interest rates in real estate equity, we will seek better risk-adjusted returns and more attractive attachment points in real estate debt.
Uncorrelated, idiosyncratic assets can add returns to a portfolio while reducing overall portfolio risk and limiting drawdowns during periods of market stress. Non-correlated assets are particularly valuable in the post-COVID market environment, given the elevated correlation between stock and bond returns, which makes bonds less effective portfolio diversifiers and portfolios inherently riskier.
To generate uncorrelated returns, we invest in assets such as commodities, litigation claims, carbon credits, as well as multi-strategy and macro hedge funds.