Although considered one of the more "traditional" alternative investments, Private Capital investment has remained an notoriously difficult asset class for all but the largest and most sophisticated individual investors to gain exposure to. Private capital involves investing in the equity and debt securities of operating companies that are not publicy traded on any exchange. Types of private capital investment include leveraged buyouts, venture capital, mezzanine lending, and other types of special situation strategies. Endowment alloctions to private capital are expected to continue growing as new opportunities in the sector - such as emerging market buyout funds - arise.
Our TrueBalance™ endowment style portfolio targets a 10% allocation to private capital, and primarily includes investments in private equity, mezzanine cash flow lending, and venture capital. Exposure is gained through a combination of direct individual investment, direct syndicate investment, and external investment with select private capital asset managers.
