Patrick Lai’s Post

🚀 Private Credit and Mini-Millionaires: A Tricky Mix Private equity firms are increasingly targeting "mini-millionaires" (those with $1M to $5M in investable assets). These investors often need liquidity for unexpected expenses, making the long lock-up periods of private credit and equity investments a tough sell. 🏦 Challenges: Unlike institutional investors, mini-millionaires are skittish about tying up their money for years. They often prefer investments that allow easier access to their funds, especially for emergencies like medical bills or unforeseen financial needs. 💡 Solutions: Firms like Blackstone, Apollo, and Ares are innovating with semiliquid funds, which offer some flexibility for redemptions. However, these still come with restrictions to prevent mass withdrawals, balancing liquidity needs with the potential for higher returns over the long term. 🔍 Regulatory Hurdles: Engaging this investor segment also brings more scrutiny and regulatory challenges. Firms need to navigate complex rules about fund marketing and investor relations carefully. Despite the hurdles, tapping into this growing wealth segment could be incredibly lucrative, provided firms can offer the right mix of flexibility and returns. We see the same trend at Kilde, where HNWIs need to know they can access their funds early. That is easier to achieve with shorter-duration underlying assets like short-term consumer loans or trade finance receivables. Another solution is engaging "market makers" who redeem investors at a discount before maturity. #PrivateEquity #MiniMillionaires #Investment #WealthManagement #FinancialPlanning #PrivateCredit #AlternativeInvestments https://lnkd.in/eV2EaVZu

For family offices, especially those experiencing a new liquidity event, private equity is a common area of interest, says Carol Schleif, CFA, FSA, chief investment officer at BMO Family Office.   But capital can get locked up for a longer term in a PE fund, so there is growing interest among wealthy investors in unlocking liquidity while accessing this market.   Dan Riverso, CFA, CMT, CEO and CIO at Jesselton Capital Management, and Matthew Sparks, managing director of private equity at Northleaf Capital Partners, also weigh in on the topic in this piece by Daina Lawrence for Canadian Family Offices. #privateequity #PE #secondaries #CanadianFamilyOffices #familyoffices #wealthmanagement #FEA #CIM #CFA #CA #CPA #CMA

Secondaries have been around for decades, but they're really having a moment now as investors flock to see what they can pick up for a discount. These investments have become an attractive part of a manager’s strategy as they solve the issue of longer time horizons, along with the illiquidity experienced in the primary market, explains Dan Riverso, CFA, CMT of Jesselton Capital. Canadian Family Offices #wealth #wealthmanagement #familyoffice #familyoffices #investing #UHNW #CMA #CFA #CPA #CA #CIM #RFP #IAFP #CFP #CanadianFamilyOffices

Why Invest in Private Markets? #ThoughtLeadership from Scott McClatchey @ Ballast Rock Private Wealth "It’s certainly an exciting time for accredited investors wishing to implement institutional-style portfolios, now that many of the largest and most respected private firms are democratizing some of their flagship funds, providing accredited retail investors access to private asset classes heretofore unavailable." #PrivateWealth #WealthManagement #RealAssets #PrivateMarkets #AlternativeInvestments #Alts #UHNW #HNW #FamilyOffices #IBD #RIA #PrivateCredit #PrivateDebt #PrivateInvestments #AdvocatesforRealAssets

LPLink's Weekly Fundraise Report: 1. David Roth, C.F.A., Andrew Holm, and Jay Glaubach's Ares Management Corporation closes $3.3 billion in its fourth fund, Ares US Real Estate Opportunity Fund IV. The fund, which saw participation from sovereign wealth funds, pensions, insurance companies, and private banks, will focus on distressed real estate assets, undermanaged properties, and redevelopment opportunities in key U.S. markets. https://lnkd.in/e_TQh-5t 2. Adam Tantleff and Josh Zegen’s Madison Realty Capital has raised $2.04 billion for its sixth fund, Madison Realty Capital Debt Fund VI LP. The fund, which received support from investors across North America, the Middle East, Europe, and Latin America, will invest in multifamily and residential-related properties, with an opportunistic view on other sectors including hotel and industrial. https://lnkd.in/eS8pQQeT 3. John Carrafiell and Toby Phelp s' BGO closes €2.0 billion for its fourth fund, European Value-Add Strategy. The fund, which saw strong support from new and existing investors, will focus on sectors with structural growth in demand, including living, logistics, and data centres in Europe. https://lnkd.in/ehb7fCSe 4. Stephen Ketchum’s Sound Point Capital Management, LP closes $1.2 billion for its third direct lending fund, Sound Point U.S. Direct Lending Fund III. The closed fund, which received investments from insurers, pension funds, endowments, and family offices, will focus on lending to smaller and mid-sized U.S. companies in stable industries. https://lnkd.in/e636HP-F 5. Simon Moss FIA’s TPT Investment Management launches a £650 million private credit fund for UK pension schemes. The fund will provide schemes with access to a diverse range of private credit investment opportunities, allowing smaller schemes to benefit from asset pooling. https://lnkd.in/eJbbMnk9

Neil Woodford is back! Whatever your take on the return of the fallen fund manager turned financial influencer, there are a few lessons we can all take heed of when it comes to investing with fund managers... ⛔ Beware the cult of the ‘star manager’ It is easy to get carried away when things work in our favour and our investments perform well. But it is at this point that we have to be on our guard for that most dangerous of human emotions: hubris. The fact that Woodford rarely gave an interview or attended industry events added to the cult of untouchability but also shielded him from a significant amount of scrutiny. Of course, there were a few critical voices in the media – but they were drowned out by the army of sycophants who bought into the personality cult of “Britain’s Buffett”. ⛔ Understand the difference between open-ended and closed-ended funds In what was clearly a huge miscalculation, Woodford decided to invest money from his open-ended fund into higher risk and more illiquid plays. Whilst a sustained period of underperformance might not prove much of a problem for a closed-ended fund, it can wreak havoc for an open-ended fund, as the manager has to meet redemptions from selling into an illiquid market. This can quickly lead to a downward spiral of the kind Woodford experienced. ⛔ Be wary when a manager steps away from their core mandate Woodford’s bread-and-butter was investing in blue-chip companies with defensive business models. But, after establishing his own business, he gradually departed from this in favour of pursuing increasingly speculative investments. ⛔ Treat ‘best buy’ lists with scepticism Woodford Equity Income was a favourite of fund ‘best buy’ lists, chief among which are those of the various investment platforms. These have long been an area of controversy for the investment industry, but the debate surrounding them has intensified following the Woodford debacle. The bottom line here is: don’t take the platform’s word for it! Do your own independent research on a fund beforehand. ⛔ High-yield, high risk? Woodford was driven into some lower quality investments as a means to generate an attractive yield to his investors. Investors need to think about the sustainability of their income before they get excited about the size of the yield on offer. ⛔ Don’t spread yourself too thinly At his new firm, Woodford was running three large funds and also delving into areas where he had little prior experience, and it seems perfectly plausible that he took his eye off the ball and spread his time too thinly. (+++Opinions are my own. Not investment advice. Do your own research.+++) Enjoyed this post? 👍 Like 💬 Comment 💌 Share 🔔 Subscribe

Know Your Investors! 🎯 Choosing the right investor is key to a successful capital raise and regulatory compliance. Here’s a quick breakdown: 1️⃣ Non-Accredited: Net worth < $1M, Income < $200K/year (single) or $300K/year (joint) 2️⃣ Accredited: Net worth > $1M, Income > $200K/year (single) or $300K/year (joint) 3️⃣ Family Offices: HNW: $10M in liquid assets, UHNW: $50M 4️⃣ Qualified Clients: Net worth > $2.1M, or $1M with advisor 5️⃣ Qualified Purchasers: Net worth > $5M, or $25M if entity 6️⃣ Institutional: Endowments, banks, mutual funds, hedge funds, pensions, insurance 💡Aligning with the right investors streamlines your fundraising journey! Inspired by Bridger Pennington and Fund Launch Thoughts ?💭 Kendall Payne #Fundraising #HedgeFunds #InvestorRelations #StartupFunding #RegulatoryCompliance #VentureCapital

Are You Seeking Wise Advice and Financial Wisdom from the Greatest Investors? Do You Need Proven Financial Help? Do This. Sometimes, the advice of those who have already become maverick investors can be invaluable for enduring and overcoming the ins and outs, ups and downs, and risks and rewards of investing. Warren Buffett Buffett's is a media favorite, and maybe the most successful U.S. investor ever and he says that finding good investing ideas is a function of cumulative knowledge over time. Also: "If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes." "Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway." "If past history was all there was to the game, the richest people would be librarians." Peter Lynch Lynch has been called "the most famous mutual funds manager." In 13 years, he managed to take the Magellan Fund from $20 million in assets to more than $14 billion, and he achieved annual returns of more than 29 percent. "Owning stocks is like having children — don't get involved with more than you can handle." "Average investors can become experts in their own field and can pick winning stocks as effectively as Wall Street professionals by doing just a little research." Sir Richard Branson Branson is an English business magnate known as the founder and chairman of Virgin Group, which consists of more than 400 companies involved in everything from music to airplanes to travel and aerospace. "My interest in life comes from setting myself huge, apparently unachievable challenges and trying to rise above them." "Business opportunities are like buses, there's always another one coming." "I am prepared to try anything once." Sir John Templeton He became world-famous and very wealthy as a pioneer of mutual funds. "Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria." "The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell." "The challenge is not simply making better investment decisions than the average investor. The real challenge is making investment decisions that are better than those of the professionals who manage the big institutions." "If you want your retirement and investments to actually grow, you will need to put your money to work." If you want to be more financially successful and dramatically accelerate your success join us. We guarantee we'll work with you until you reach the level of success you desire. Live Long and Prosperously, Reitenbach-Kissinger Institute Sydney and Michael Text: 650-515-7545 Email: [email protected] See: mksmasterkeycoaching.com Helped Over 5000+ Businesses Generate $1 Billion Offering Result Only Coaching: Exceptional Profit Results-Proven Strategies and Universal Law Skills Every Business Owner Wants to Achieve Their Essential Transformation

Investing in mutual funds offers a diversified and professionally managed approach to growing wealth, making it an attractive option for both novice and experienced investors. #MutualFunds #InvestmentGuide #WealthBuilding #FinancialGoals #Diversification https://lnkd.in/d5arnK5s

This was an interesting one to dive deeper into. Blue Owl Capital will seek to replicate its latest continuation fund transaction as a means of providing liquidity to investors within its GP stakes funds. The vehicle was not structured as a traditional secondaries transaction as the backers of the continuation fund are not traditional secondaries firms or fund investors. Rather, they are long-term yield oriented, Private Equity International understands. https://lnkd.in/dfcGr6WD