“We look for consistency of fund size, the experience of the team and consistency regarding how they approach their investment process. Additionally, there is a significant demographic change in the industry. There are some managers who have handled leadership transitions in their organizations very poorly. We always review how they have managed that process.
Obviously, we cannot commit to a private equity fund whose managers do not manage leadership changes well. If we commit to a PE fund, it is with the intention of partnering with them for the next 10 to 15 years, and perhaps even longer. We want to commit to a small number of fund managers, so the dynamics of their internal teams are important. It is also important for us to understand where the organization is in its lifecycle and how it is managing transitions that are likely in a particular cycle.”
The following will help you recognize quality fund managers: consistency, discipline, and time.
Post by Marcelino Pantoja