Alternative Asset investing was originally a capital gains business.   Today, as few as 10% of all alternative asset funds are able to consistently outperform the public markets.  Superior, risk-adjusted returns and outstanding performance in alternative asset investing may be achieved by sponsoring new partnerships with differentiated investment methodologies that achieve superior returns, supporting General Partners with unique non-auction deal flow, accessing top-tier venture capital funds, and executing direct co-investments  As global private equity investors and organizers of the Global Private Equity Alternative Asset Investor Conference, we are in the unique position of having direct access to leading private equity investors, both General Partners and Limited Partners, from around the world.  We have the opportunity to invest in premier private equity funds with extraordinary track records, and co-invest in top performing quality private equity and venture capital deals.  We maintain close working relationships with world-class private equity investors who have deep knowledge and experience in investments in a diverse range of sectors.  Our close ties to these highly accomplished private equity investors enable us to gain prescient knowledge of trends in private equity investing.  

     As a family office, we seek superior returns that exceed ten year alternative asset industry averages.  We define out performance as those buyout, venture or hedge fund investors' net return is double the public market (S&P and MSCI Indices) average returns during any consecutive ten year period.  Specific to private equity, we may invest in long term buy out funds if the returns outperform the liquid public equity markets.

Philosophy and Strategy: 

      Access to top Private Equity Investors

     We have created one of the most powerful network of  private equity General Partners and Institutional Limited Partners.  This extensive network enables us to research and analyze global private equity investment activities by meeting and interviewing the investment teams of top performing private equity firms. We believe that deep knowledge and clear understanding of alternative asset investments may enable us to create a properly balanced global alternative asset allocation for our investors. 

     Access to "Spinout" Funds 

     Superior returns in new private equity funds may be created by a small group of investment professionals who may have previously worked together as a team at leading global institutional organizations. When these teams “spinout” to create their own investment firms, our wide network of contacts and close relationships with these investment professionals may give us early access to these new funds. We seek to support extraordinary performing established funds, as well as  smaller “first time funds” with experienced, ambitious and talented investment teams who invest a significant portion of their personal net worth along side Limited Partner investors. We also provide our investors and partners the opportunity to invest side-by-side directly into these new private equity funds. 

       Selection of  Private Equity Funds

      Our decision making in selecting the most suitable funds for investment involves thorough due diligence that begins with a personal recommendation from our extensive network, which includes our Alternative Asset Board of Advisors.  We believe that one of the most important characteristics of a successful fund is the investment team. We rely upon personal interviews and recommendations from our broad network within the private equity and business communities to gain valuable insight into the integrity and strengths of an investment team.  We require that the actual decision-makers as well as next generation team are properly incentivized and that their interests are aligned with those of limited partners. In evaluating investment processes, we have a thorough understanding of the sources of returns as we are experienced global direct investors.

        Investment Focus  

      The Fund's focus is to invest in experienced fund managers who have the potential to generate superior rates of return.  We seek returns that are double the industry averages.  We support talented investors with industry expertise in areas such as, but not limited to, hedge, technology, life sciences, leveraged buyouts, management buyouts,  distressed, and real estate.  We seek to build a diversified portfolio of smaller private equity and venture funds, but without geographic limitations.  Our investment team and internal policies and procedures allow us to create long term relationships among our private equity partners and investors.   The competitive and over funded sector of corporate buyout may continue to disappoint by under performing public stock markets (S&P) investment returns.   In 2005, some US $100 billion and Euro 40 billion raised by buyout funds is awaiting deployment.   Excess supply of capital in buyout funds, lack of exits via public stock markets, and lack of proprietary deal flow is forcing the US buyout industry to change.  We seek unique funds with outstanding performance.

       Stringent Criteria

     Manager selection demands thorough review of prior investment performance and intimate knowledge of the investment team.   As the efficient US buyout marketplace is comprised of an estimated 900 funds with over $100 billion in capital, we actively seek top decile performing US private equity funds, and non-US private equity funds. Private equity is a local business and we support local indigenous teams in Europe, USA and Asia who already manage private equity funds with proprietary deal flow and outstanding performance.  We believe that inflationary auction pricing that plagues American buyout deal sourcing is one major cause of US private equity under performance.  We seek unique funds who dominate their marketplace with strong local strategic, corporate and Government investors.  We participate as part of the partnership entity, and advise the general partner on their Limited Partner relationships by addressing issues such as the vesting of carried interests, key man provisions, distribution policy, the allocation of profits, losses, and operating expenses between the general partners and the limited partners, reporting and compliance.  

       Portfolio

China Distressed Buyout Fund:    
The Fund seeks purchase of controlling positions in distressed and under performing real estate projects in China and completing, renovating or repositioning them for resale. The Fund will target projects that are in prime location in major cities and can be restructured or completed in less than one year. The Fund will use leverage from domestic bank sources as well as take advantage of the unique presale characteristics of Chinese market to reduce working capital requirement.  Unique 4 year term structure, and up to $25 million contribution from the General Partner; includes a team from a NYSE listed Chinese corporate who is one of China's largest property owners.

India SME Fund:
The Fund seeks to create value for small and middle market companies (SME) vide an India Central Strategy that brings globalization advantages to local companies.  The fund seeks to invest in SME companies in IT, Business Process Outsourcing (BPO) and Life Sciences sector.  The fund's General Partner and Country Advisor includes the one of the largest private equity manager in India with 7 existing funds and foreign investors including AIG, ADB, IFC, DEG, University of California, Equitable Life, ORIX and JBIC.  8 year term structure, and $10 million contribution from the General Partner.

                                             
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