Crossover investing is designed to combine the best of late-stage venture capital and public equity investing. Many of the world’s fastest growing companies are staying private longer and are seeking public equity investors for their late-stage funding. Unlike public market investing where access and liquidity are readily available to all investors, late-stage private equity investing requires a more intricate skill set – detailed private market insights, a robust network to access the top deals, and a highly selective process. These attributes are typically reserved for specialized managers that have an extensive history of investing in fast growing sectors like Technology, Financial Technology, Life Sciences and Clean Energy.
Our Crossover Growth strategy offers a Public/Private Hybrid approach, bridging the gap between pure public and late-stage private equity investing. The strategy is focused on high growth sectors, where innovation and disruption often create opportunities for meaningful alpha generation over a multi-year horizon. We partner with managers who have the network and skill set to evaluate investments across the liquidity spectrum and determine where the best risk-adjusted reward exists. The strategy targets a net exposure of 50%-100% and may have up to 50% of capital, at cost, invested in late-stage private investments.
Over the past decade it has become clear some of the most exciting growth opportunities are found in the private domain. As part of our Crossover Growth Strategy, we utilize our global network to opportunistically participate in private investments through co-investment structures, alongside our managers, often at advantageous fee structures.
There is no guarantee that any of the strategies’ objectives described above will be achieved. Graph is provided for illustrative purposes only and does not represent the results of actual trading using client assets. Data is completely theoretical. Graph is not intended to show hypothetical or actual performance results using actual data points but rather to demonstrate the relationship between crossover investing versus venture capital and public equity investing.