The one off purchase of Limited Partnerships have disappeared as more and more investors tell general partners that they want first call. Virtually all institutional investors are divesting of managers.
New York, NY (PRWEB) January 20, 2015
The Ivy Family Office Network hosted its December 2014 Family Office and Private Investors Outlook Forum in New York, NY on December 9th. Chuck Stetson, CEO of Stetson Family Office which formed PEI Funds, led a panel discussion on “Direct Investment Strategies.”
Stetson said “There is an opportunity in providing solutions to investors in venture capital and buyouts by purchasing the U.S. Limited Partnership interests and direct investments purchased on a secondary basis. The one off purchase of Limited Partnerships have disappeared as more and more investors tell general partners that they want first call. We have continued to focus on providing solutions to issues that come up regarding liquidity which require a negotiated approach.”
Moreover “Family offices are becoming increasingly important as both people that want to both invest and divest. Virtually all institutional investors are divesting of managers. This is creating a significant opportunity. The dealflow in this space is substantial, with 3% of the deals fitting into our execution model.
Other speakers on the panel included Steven G. Chrust of Centripetal Capital, Katherine Hill Ritchie of PEX Global, Inc, and Robert Spatz of Bearing Capital / Bearing Agro.
Mr. Stetson is CEO of Stetson Family Office, which formed PEI in 1992 as an investment vehicle for the Stetson Family Office. Since co-founding PEI, Mr. Stetson is involved in all aspects of the firm’s development and investment process and particularly focuses on gamechanging direct investments. He led the strategy for Matrix One where the initial investment was at $18 million valuation to an exit for investors at $1.6 billion. He is an industry pioneer of secondary purchases of both limited partnership interests and portfolios of direct holdings, having completed his first secondary transaction in 1978. Mr. Stetson received his B.A. from Yale University, an M.B.A. from the Columbia University Graduate School of Business and an honorary L.L.B. from Concordia University – Portland.
PEI is a specialist in small private equity secondary purchases, typically less than $30 million in net asset value, of mature venture capital, growth equity, mezzanine and buyout fund interests and portfolios of direct privately held companies.
About The Ivy Family Office Network Forum
The Ivy Family Office Network Forum, IvyFON, is a leading peer to peer global family office network with several hundred family offices attending events internationally every year. Some of the more than 2,500 past speakers include most of the top 10 largest asset allocating consultancies, pre-eminent alternative investment funds, leading institutional investors, best-in-class asset management professionals, family office subject matter experts and world-class family offices.
IvyFON includes New York City and Los Angeles multi-discipline deal networks including private equity, health care and real estate. More than 20,000 investment, family office and institutional investment professionals have attended forums globally.
For more information on PEI Funds contact Chuck Stetson at PH 212-750-1228. For more information on the Ivy Family Office Network, contact us at 646-290-8114 or at ivyfon.com/contact.html.