Private Equity Insights interviews Thomas Eskebaek about the next generation of private equity investment.
What makes investing in private equity so difficult?
Private equity is the largest alternative asset class, but almost entirely unavailable to smaller investors due to the significant barriers to entry. The most successful funds are often heavily oversubscribed and have very large minimum investment sizes that make building a diversified portfolio next to impossible for all but the largest institutional investors. Furthermore, carrying out due diligence on funds and constructing a thoughtful portfolio can require a lot of internal resources that smaller investors simply don’t have.
What makes a successful private equity strategy?
There is no silver bullet to building a perfect allocation strategy, as a given investor’s approach will depend on short- and long-term objectives as well as their attitude towards risk. However, two things are key: firstly, the performance of funds within the same strategy can vary substantially. It is therefore important that, whatever strategies you invest in, you select top performing managers. Secondly, as a relatively illiquid asset class, you need to take a long-term approach and plan ahead, modelling your cash flow and exposure projections.
Where do you see the future for private markets?
For years now we’ve seen a trend towards private market investing, both in terms of the overall pool of capital and the relative performance vs public markets. As this trend continues, there will undoubtedly be increased pressure on all sides for market innovation to allow wider participation. Ambitious GPs embrace this previously untapped pool of capital, while for investors who take a thoughtful and diligent approach, it will unlock new avenues to build robust portfolios that can deliver against their investment objectives.
What is Titanbay?
Titanbay is a platform that gives small and medium-sized institutional investors everything they need to build a thoughtful and diversified private equity portfolio. We secure allocations with a selection of the best private equity funds in the world, making them available for our members to invest in. We also provide the tools and information they need to construct a bespoke portfolio to help them achieve their investment goals.
What do investors get on the platform?
Firstly, members get access to leading private equity funds. These funds have been specifically curated by our highly experienced investment advisory board, giving members the peace of mind that they present some of the best funds in the market today.
Next, we provide a series of portfolio analysis tools that help members construct a portfolio that meets their investment objectives. This includes modelling their cash flow and tracking their underlying exposure across different strategies, geographies, and sectors.
Finally, we have built a community of like-minded investors, allowing our members to learn from one another as well as industry experts to build thoughtful and strategic private markets programmes.
Can individuals join the platform?
We don’t believe that private equity is suitable for all investors, and so it is important that anyone investing in private markets is informed and knowledgeable and receives the relevant guidance and advice.
While individuals can join the platform, we are focused on partnering with wealth managers and private banks. Through these partnerships, their clients gain access to our funds, tools and materials, while benefiting from the advice and guidance of qualified professionals who have a birds-eye view of their financial situation.
What funds are you looking to bring onto the platform at the moment?
Our aim at Titanbay is to provide access to the category winners in any given strategy in any given vintage, which means our investors can build a diversified portfolio of top performing funds. We offer 8-12 top-tier funds per year across strategies in our main programme. Alongside the leading funds we currently have on the platform, we’re working with top-tier managers across strategies spanning growth, technology, credit, and impact.