Private Market Capabilities
Once the preserve of institutional investors such as endowments, pension funds, and sovereign wealth funds, private markets are becoming increasingly relevant to a broader range of investors. JTFM has extensive practical experience of advising family offices, private wealth, charities and endowments on investing in this area.
“JTFM do not sell private equity – their role is to guide clients through the options available”
“Under your guidance we have made significant progress in a short space of time. I’ve particularly appreciated your patience in helping us on this journey”
“Thank you for your help from a personal perspective. I have listened carefully to what you have said throughout and I don’t think we could have asked for a better partner to take us through this process”
“I totally appreciate everything you do for us. Your patience and advice never goes unnoticed”
Our services cover the following areas:
1. Strategic Advisory
Embarking on a private markets programme can be daunting. We work with clients to help them make an informed decision about what will be involved, the resources required, the range of approaches available, and their pros and cons.
Typical areas that will be covered are:
- whether to invest in private markets and, if so, to what extent it will impact on target returns and risk profile;
- formulating strategic asset allocation policy, including sub-strategy allocations e.g. buyout, growth, venture etc.;
- implementation options;
- whether to delegate, run in-house, or a blended approach; and
- and how to access the most sought after funds.
Where required, we invest time in education to ensure that all relevant stakeholders are aware of what is involved in a private markets programme.
2. Commitment Planning and Implementation
Pacing of commitments, and managing the resulting cash flow requirements, can be challenging. Once the strategy has been agreed, we work collaboratively to model bespoke commitment plans to solve for the client’s target asset allocation.
Key questions our clients often ask us:
How much capital do I need to commit to private market
funds to achieve my target allocation?
How will new commitments impact my future portfolio value?
What will my future cash flows be so I can manage
expected capital calls and distribution?
Exploring the options for portfolio construction and identifying the right partner or partners for the client, is critical. We have seasoned relationships with leading global private markets providers and have advised on programmes for portfolios ranging from $10m to >$1bn.
3. Performance Measurement and Reporting
We offer detailed, private market-specific reporting modules, designed to track performance at aggregate portfolio level, together with a detailed ‘drill down’ to strategy, regional, sector, and individual fund level, all compared against relevant benchmarks.
As well as performance reporting and benchmarking, we provide tailored forecast portfolio returns, which can be overlaid with a range of economic scenarios.
What are Private Markets?
Private markets refer to investments not listed on publicly accessible stock exchanges. It covers investment in the shares of privately owned businesses, making loans to businesses, and acquiring infrastructure assets and real estate. In turn, there is a wide degree of choice within each of these sub-categories. For example, investing in privately owned businesses can range from providing venture capital for fledging firms, funding the expansion of growing businesses, or acquiring mature businesses.
Private markets have grown substantially over the past 20 years, and can offer the potential for enhanced returns, together with increased diversification. However, they are complex, illiquid, and come with substantial fees.
Some key strategies can be found on the right.
Get in touch
We are always happy to have an initial discussion on a “no obligation” basis. Please feel free to contact one of the team.