Grove Street Advisors Summary 1

921 WordsAug 13, 20154 Pages
FINS3623 Venture Capital Week 3 Tutorial Grove Street Advisors Facts Who are the Grove Street Advisors (GSA)? • Who the key personnel? • What is the issue at hand here for GSA? • What roles do CalPERS, NIB and Oregon play? • How has the “intermediation” industry evolved in the past 30 years? • 2 Fund of funds • Fund of funds - what is it and why do they exist?  Intermediaries between LPs (ultimate investors) and individual PE funds Values added:        Investing on behalf of LPs Providing access to PE funds Scaling down investments Scaling up investments Reducing LPs’ costs and staffing levels Diversification across time, industry sector and geography Shares of PE pool rose from 1% (1985) to 6% (1989) to over 20% (2000) • 3 Fund of funds Which institutions have the best PE returns? • • • • • • • • Public pension funds Corporate pension funds Uni endowments Advisors (F of Fs) Insurance cos Banks Other investors Overall 12% -3% 24% 20% 6% -0.1% 7% 12% (Source Lerner, Schoar and Wong 2009) Prepared by Ping Du 2013 • 4 Fund of funds Typical Fees & Incentives Required LP Staffing Required LP Knowledge LP Access Direct Investing N/A Very high Very high Extremely high Fund investing without advisor 2% + carry High High Very high Fund investing with advisor 2% + carry + fixed fee High Med High Dedicated program 2% + carry + .75% fee + incentive Med/low Low Med Fund-of-funds 2% + carry + 1% + 8% carry Low/nil Nil Nil Method of investing 5 Fund of funds 6 Fund of funds 7 Question 1 How does GSA propose to create value for its investors? • 8 Question 1 • How does GSA propose to create value for its investors? •

More about Grove Street Advisors Summary 1

Open Document