Private markets investing has grown steadily over the past 10 years, with investors chasing diversified returns and hedges against the backdrop of an increasingly volatile public market. At the same time, the sustainable investment landscape is continuing to evolve rapidly. Private markets are particularly well suited to sustainable investing, as fund managers have direct ownership and control over the assets they hold. This provides abundant opportunities for engagement.

While an intrinsic knowledge of cashflow measurement and the relevant metrics is vital when it comes to achieving success in the private market space, says Tycho, building relationships with the best managers is even more important.

He explains: “In the private equity space, success comes through people getting to know who the best managers are and forming a relationship with them because the very best managers – those that have no difficulty raising capital from existing investors – tend to be oversubscribed most of the time.” 

He adds: “If you’re a new kid on the block and you want to invest with these managers, you need to hire people who already know who those people are and, ideally, have already formed a relationship with them. That’s a really big challenge.”

Read the full article here.