Certain large investors require a more customized approach to private equity. PCM has developed expertise in creating vehicles for such investors in ways that satisfy their specific needs, including regional or geographic focus, sector specific focus, emerging managers, vehicle structure, etc. With expertise across a number of areas of the private equity landscape and a willingness to be flexible in addressing the specific needs of large investors, PCM is well-positioned to create tailored structures for certain investors.
PCM has been investing directly in companies since its inception, and its management team has considerable experience in evaluating, investing in and monitoring private companies at various stages in their lifecycles and in various industries, including venture capital and control transactions. PCM pursues direct investments as co-investments alongside high quality managers with specific expertise in the target companies’ industries and with whom PCM enjoys existing relationships. In addition, PCM may purchase secondary directs as part of its secondary market activity, providing liquidity to investors who seek to exit prior to the planned holding period of the portfolio company. In such cases, PCM seeks situations where such companies are owned and managed by highly capable private equity firms with whom PCM enjoys an established relationship.
PCM also offers a specialized investment product that combines private equity funds and hedge funds in a single vehicle, creating a liquidity managed approach to private equity. For investors who find traditional private equity structures to be inconvenient (staged capital calls, J-curve, lack of liquidity), this product may represent an attractive alternative, allowing investors to fund their investment commitment 100% at close, with the liquidity managed in a hedge fund of funds and a commitment to an underlying private equity product, with the cash flow requirements managed internally within the fund. Investors are able to redeem progressively over the life of the fund, with a reserve for the private equity portion of the product.