How I Invest with David Weisburd E116: How Everyday Investors can Access Private Equity w/Pantheon ($70B AUM)
Nov 29, 2024
Victor Mayer, Managing Director at Pantheon, shares insights from a firm managing nearly $70 billion in assets. He discusses the surge of evergreen funds and their advantages over traditional structures, emphasizing improved access for smaller investors. Victor also delves into the strategic balance between small and large-cap investments, highlights the benefits of no-cost co-investment deals, and examines the complexities of navigating fee structures and adverse selection in capital-raising efforts.
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Large-Cap Fund Deployment Pressure
- Large-cap funds face pressure to deploy capital quickly during their investment period.
- This can lead to diminished selectivity and increased leverage, potentially impacting returns.
Small/Mid-Cap vs. Large-Cap
- Small and mid-cap markets offer a larger universe of companies compared to large-cap, presenting more opportunities.
- Large-cap funds, with increasing size, face challenges in differentiation and often resort to higher leverage.
Identifying Top Buyout Managers
- Look for private equity managers with a clear focus on stable teams, proven track records, and defined processes.
- Prioritize those operating in the small to mid-cap range, ideally with fund sizes between $0.5B and $2.5B.