Capital Allocators – Inside the Institutional Investment Industry [REPLAY] Private Equity Masters 1: John Toomey – HarbourVest Partners (Capital Allocators, EP.200)
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Apr 17, 2023 John Toomey is a key player at HarbourVest Partners, a major private equity firm managing over $75 billion. He shares insights on the evolution of private equity, the growth of co-investments, and the strategic advantages of secondary markets. Toomey discusses the significance of data and operational diligence in investment decisions. Delving into global ESG challenges, he highlights the balance between compliance and fiduciary duties. With a wealth of experience, Toomey offers a thoughtful perspective on navigating the complex landscape of private equity.
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Career Shift
- John Toomey, initially a chemistry major, switched to finance after realizing its greater appeal compared to atmospheric modeling.
- He joined HarborVest in 1997, drawn by its unique market position and the opportunity to learn from industry pioneers.
Due Diligence Evolution
- Private equity due diligence has evolved significantly over the past two decades.
- Key changes include increased data availability, the influence of secondaries and directs, operational due diligence, ESG considerations, and diversity and inclusion.
Return Drivers
- Evaluating how managers create returns is crucial, considering factors like multiple arbitrage, cash flow pay down, and M&A activity.
- Consistent operational improvements and market opportunity execution can provide insulation from market cycles.