203-658-8858 | 1100 Summer Street, Suite 106 Stamford, CT 06905

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Investors

FCP provides exposure to alternative investment management strategies through passive minority economic interests in the management companies of top-tier, large alternative investment managers. Our investors enjoy the benefits of not only the underlying fund performance, but also the secular industry growth driven by asset gathering and the attractive financial profile of underlying management companies. Specifically, our portfolio is designed with the following characteristics:

  • Relative to ordinary limited partner investments with alternative managers, FCP investors are positioned for upside through exposure to performance fee stream
  • Downside protection through dividend yield and deal protections
  • High current income offsets traditional private equity J-curve
  • Benefits from both underlying strategy returns and secular industry growth through asset gathering – large hedge fund managers are expected to grow AUM at a rate of 15% per annum through 2017, with almost half of the growth attributable to net new asset flows
  • Highly attractive financial profile of underlying managers – strong margins coupled with highly variable cost structure
  • Dominance of large alternative managers – over 85% of new industry asset flows accrue to hedge funds over $5 billion in AUM
  • Large alternative investment managers’ competitive position buttressed by strong, consistent risk-adjusted returns and industry-leading operational infrastructure
  • Strategy and manager diversification through FCP portfolio investments across multiple managers
  • Synthetic fee-break if FCP investor is also an investor in an underlying fund

 

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