What we do — Fiduciary Co-investment Partners

The FCP Proposition

FCP brings to its partners a new approach to co-investing

Multi-asset class: We have deep-rooted relationships with the most sophisticated alternative asset managers. We provide access to the full range of Private Market opportunities from Private Equity (Small, Medium, Large), Growth Capital (Late Stage VC to Pre-IPO), Private Debt, Infrastructure and Real Assets

Transparent pricing: No complex ‘double fee’ structures or heavy upfront broker payments. Fees charged to FCP investors are always presented transparently and up front, with every investment’s potential returns clearly presented on a Gross and Net-of-fees basis

Deal-by-deal investments: No blind pool fund investments with long lock-up periods - clients decide if, how and when to invest their capital

‘Deferred gratification’ business model: Brokers and other agents typically earn significant up-front fees driving an incentive to close deals at any cost, rather than taking true responsibility for their clients’ capital. FCP’s senior team invest alongside clients in every deal, and earn the majority of compensation only upon exit

PRIVATE EQUITY CO-INVESTING:

SOLVING THE ACCESS & EXECUTION CHALLENGE

““…you are not being invited to a special dance, you are being approached because you are a lender of last resort…”

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— Bill Gurley, General Partner, Benchmark Capital, Above the Crowd, April 21, 2016

Although co-investment execution and due diligence is typically lighter than that required for a similarly sized direct investment, the reality is that active and leading players in the institutional co-investment world still employ well-resourced teams numbering into the dozens and costing millions per year. Not all institutions or family offices can replicate similar execution capabilities on an economically viable basis.

FCP addresses these problems by spreading the costs of its institutional grade sourcing, diligence and execution platform across a much larger Private Markets AUM base than that of any one of its individual clients. Furthermore, it aggregates clients’ firepower to establish a more familiar, referenceable and credible co-investment counterparty to generally oversubscribed and rightly skeptical lead managers. Our existing portfolio (and the quality of its lead GPs) is a testament to the ‘institutional grade’ access FCP generates on behalf of its clients.

Co-investments alongside the most oversubscribed lead managers are, unfortunately, not easily accessible. They are typically offered to large existing fund LPs first, to medium-sized LPs and prospective big-ticket investors second, and only finally to smaller, less strategic investors such as family offices. As VC Bill Gurley has warned, smaller investors are often viewed as “a lender of last resort” by the private markets ecosystem.

Smaller investors may experience significant deal flow through various channels, but they must ask themselves serious questions about the quality of said deals: Are they being shown the deal before or after larger, more attractive LPs? What monetary incentive might a placement agent, broker (or even a friend) have been promised to pitch a particular deal? What incentives do early-stage VCs sitting on a massive paper gains have when describing their portfolio companies to later stage investors? And how much counterparty risk is there in supporting an independent sponsor that lacks certainty of funding and/or a diversified revenue or incentive base?