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Historically, private equity fund managers have had a choice between two "types" of investors:
- corporate investors and high net worth individual investors, who can typically add substantial value to the teams (and to the fund's portfolio companies) with which they invest, but who are typically small investors and relatively unreliable in terms of committing to follow-on funds even if the fund's performance is outstanding;
- institutional investors who can make relatively large commitments and will reliably continue to participate in future funds, but who generally add relatively little value beyond being a stable source of capital.
A key part of GSA's approach has been to change this equation by effectively building the first "value-added" institutional investor on several levels that can support both well-established proven teams and new and emerging teams:
Proven Teams
- A practical vehicle for even the smallest fund managers to access capital from the largest financial institutions
- Support for staff additions at both the fund and portfolio company levels
- Additional deal flow from GSA's proprietary sources - Grove Street will not lead transactions, but will often co-invest in transactions which it sources to its fund managers
- Support for specific portfolio companies through GSA's network of industry contacts and relationships
New and emerging teams
- Support across a broad range of operational issues regarding the development of a first class investment organization
- Fund raising strategy and identification of investors likely to have an interest in specific types of fund
- An understanding of the industry's best demonstrated practices, including terms and conditions for legal agreements, compensation, and investment strategies
- Introductions to potential syndicate partners
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