The Beringer Group believes that Private Equity (P.E.) is an asset class that can add to a portfolio. We typically gain access to private equity through funds, or fund of funds depending upon the client asset size.
The two factors that most influence P.E. fund returns are manager ability and vintage year. Managers that have previously run top quartile funds, tend to be able to repeat that level of performance. This correlation is stronger in P.E. than in any other asset class.
The second factor is vintage year. If a fund starts when the marketplace is overvalued, the fund will probably under perform. It is difficult to see these trends as they are happening. Therefore, we recommend a commitment to a series of investments over multiple years.
The Beringer Group deals with these two issues by recommending only top quartile P.E. funds and by diversifying them over a defined number of years. By creating a ladder of world-class P.E. funds for our clients, we increase the likelihood of very positive performance.
In addition to P.E. funds, we are also uniquely qualified to review one-off direct P.E. investments for our clients. Since we also provide Merger and Acquisition services, high net worth individuals are constantly exploring new business opportunities. The Beringer Group has the ability to take advantage of those opportunities and make them available to our client base.