In partnership with the investment adviser, GAM will aim to launch a capability that gives clients the opportunity to gain exposure to a market that has “historically been difficult” to access.
“We are seeing companies stay private for longer, driven primarily by regulatory changes, ease of business model development in the private sphere and a larger pool of available private capital. A significant portion of these companies’ value appreciation occurs prior to entry into the public markets, at mid or large cap size,” Liberty Street managing director Kevin Moss said.
“We believe that late-stage, private growth companies can present an attractive balance of risk and return for investors, compared to early-stage venture investments and public equities.”
GAM Investments group chief executive Peter Sanderson called Liberty Street an “ideal partner” and the right move given the increase in the number of clients looking to diversify their portfolios using longer-term private asset investment strategies.
“In our view, privately-owned companies in their later-stage non-public funding rounds could offer investors strong long-term performance potential, while their historical downside resilience and lower volatility compared to public equities also makes this asset class attractive for portfolio diversification,” Mr Sanderson said.
