Separate Accounts

PCM views separate accounts as a way to leverage its core capabilities by offering a customized portfolio to large investors that have specific portfolio needs. Such accounts can be structured to accomplish various needs, such as:

Strategy specific: Certain investors may seek a more customized strategy mix between secondaries, primaries and direct investment as well as more control over the definition of the specific strategy elements.

Portfolio stage: Some investors may have need for a more customized exposure to buyout or venture capital in their portfolios.

Emerging managers: PCM has invested in emerging managers since its inception and has a strong record in identifying younger teams. Some investors may seek to use such a focus as a form of talent search or a complement to an existing private equity program.

Fund size: Investors who target larger funds directly may be too large to invest in small funds directly and may prefer a more diversified approach to investing in smaller funds.

Vehicle structure: In a separate account structure, PCM can accomplish certain structural features that may be valuable to certain investors, such as timing of deployment and capital calls as well as fee structure.

Co-Investment and Secondary Directs

PCM’s relationships with hundreds of private equity firms frequently lead to attractive co-investment opportunities in dynamic private companies alongside of capable General Partners who value their relationships with PCM. PCM is highly selective in pursuing such opportunities and especially focused on the alignment of interests between PCM and its co-investment source. PCM will also consider purchasing interests in private companies from investors seeking liquidity, an activity that leverages its experience in the broader secondary market. In secondary directs, PCM will consider both individual interests as well as portfolios of interests, in which latter case, PCM will frequently work with individuals who can assume a managerial role with respect to the acquired portfolio.

Hybrid Fund

PCM has created a hybrid investment product that combines both private equity and hedge funds into a single investment vehicle. The product leverages the experience and expertise of PCM’s private equity team and the Permal Group’s hedge fund team and offers investors a convenient single vehicle to obtain a diversified alternative investment allocation.