Primary Fund Investments

Performance Equity Management systematically builds relationships with high quality managers, sponsors and placement agents, giving us access to preferred deals. Our membership on most advisory boards, which forms the basis for our unique value-add capabilities, is critically important.

The firm’s advantage in sourcing and assessing primary funds stems from many factors, including our team’s access to the best firms, our extensive research capability and our disciplined portfolio management strategy.

When evaluating individual investment fund opportunities, we focus on these criteria:

  • Management team and organization
  • Transaction sourcing and selection
  • Investment strategy and portfolio management
  • Investment performance
  • Value-add capabilities
  • Terms and conditions

Direct Investments

Performance Equity is an active co-investor, building upon successful strategies developed and implemented by our senior investment professionals. We invest alongside high quality sponsors across a broad spectrum of private equity alternatives, including management buyouts, growth equity, expansion financings and turnaround investments.

As a pioneer of direct investment programs, our team leverages long-term relationships to access attractive opportunities. We invest across industries, geographies, technologies and company development stages based on these criteria:

  • Quality of the management team
  • Market leadership
  • Growth potential
  • Sector experience of the underlying sponsor
  • Deal valuation

Since the majority of the firm’s deals are sourced on an exclusive basis, we capitalize on the extensive due diligence work of our deal sponsors. This is followed by our own due diligence process, where we scrutinize each potential investment’s specific risk/return profile from a variety of perspectives, including how each opportunity fits within the specific fund’s portfolio.

Secondary Investments

Performance Equity Management has a long history of funding secondary investments that complement our primary investments and broaden our industry reach. Secondary investments offer diversification benefits and the ability to deploy capital quickly and efficiently, as well as mitigation of the J-curve effect. The firm’s ability to invest in secondaries plays a vital role in the diversification of our overall investment program.

Utilizing the knowledge gained from previous evaluations and investments in venture capital and buyout funds, we quickly and efficiently act upon presented secondary investment opportunities. Toward this end, we have developed a bottom-up approach to deal analysis and evaluation, supported by the insights gained from our long-term general partner relationships.

Our selectivity, coupled with Performance Equity Management’s ability to commit significant capital, makes us a preferred buyer of secondary limited partner interests. We continue to actively pursue secondary private equity opportunities.