PCM has been investing in private equity partnerships since the early 1990s and has established relationships with many high quality managers. In addition, PCM has developed a process and expertise in evaluating managers that enables the Investment Team to efficiently and effectively review the many private equity funds that come to market each year.

Investment characteristics:

Primary fund of funds invest in funds at the time of their creation and therefore enjoy the full lifecycle of the companies in which the underlying managers invest. While the holding period will generally be longer than secondary funds, the primary investor will participate in all of the successful investments that the underlying managers are able to identify. For this reason, the primary investor may be able to enjoy a higher multiple on this investment over a longer holding period.

Primary Fund of Fund Characteristics

• Benefit of full lifecycle of investments
• Participation in all successful investments
• Potential for higher multiple

Venture Capital:

PCM has been investing in venture capital since the firm’s inception. A higher risk sector within private equity with a notoriously wide spread between the top and bottom performing funds, venture capital is highly rewarding to those who identify top performing managers and can be equally punitive to those who do not.

Buyout investments:

PCM has invested in buyout managers since its inception with a consistent preference for smaller funds and growth oriented managers who utilize less leverage. Buyout funds are generally lower risk, except for those practitioners which utilize excessive levels of debt, but have less potential to produce outsized returns.

Customizable:

PCM’s primary products currently offer investors the ability to customize their exposure between venture capital and buyout strategies. This feature enables investors to determine their own risk tolerance with respect to the stage of underlying investments. PCM’s investors include those Limited Partners who seek a broad exposure to private equity as well as large investors, that utilize PCM’s products to complement their existing private equity portfolio.