Innovative fund manager, ALTI Financial, seeks to offer individual investors access to institutional quality private equity allocations without some of the drawbacks of many current 1940 Act products.
New York, NY (September 7, 2023) – ALTI Financial is pleased to announce that the ALTI Private Equity Access and Commitments Fund (the "Fund") has been declared effective. Individual accredited investors can now access the Fund, which intends to offer exposure to private equity using a term structure – a method used by institutions and the ultra-wealthy for decades.
“We are thrilled to broaden access to high-quality private equity deals in a structure that we believe makes sense for individual investors,” says Joseph Bonvouloir, co-founder and Chief Executive Officer of ALTI. “Direct investments in private equity from leading private equity funds has historically been limited to a small number of institutional investors with significant financial resources. We are here to change that.”
ALTI and its partners seek to provide a unique structure that combines features of a 1940 Act tender offer fund with those of a traditional institutional finite life investment fund. The goal is for the Fund to provide the qualities enjoyed by large investors without imposing on its shareholders capital calls and evergreen reinvestment risk while providing potential return of capital.
Co-founder and Chief Investment Officer, Sheryl Schwartz, who was responsible for building TIAA’s alternatives business and growing its portfolio to over $13 billion, will lead ALTI’s deal sourcing efforts.
“I co-founded ALTI in order to create a vehicle that is similar to the private equity products I invested in as an institutional investor. I am very excited about our progress and launch of the company” says Schwartz.
Other members of the investment team include two individuals who Schwartz worked with at TIAA-CREF; John Litchfield and Holly Holtz. They will be joined by Lee Dranikoff who was formerly a Managing Director at American Securities and brings perspective from a major private equity GP.
The Fund launches with direct strategic relationships with both major global sponsors and multiple institutional limited partners that do not take advantage of all the co-investment access that they get as major PE fund investors. This allows ALTI to benefit from exclusive access to co-investment deals from a variety of sources and select only the ones that its investment committee has the highest conviction in.
In addition, ALTI has collaborated with Numeric Investors LLC (‘Man Numeric’), a subsidiary of Man Group plc – a $151.7 billion* AUM active investment management firm – to manage a portion of the Fund’s liquid sleeve.
“We believe that liquidity is an important feature of many investment offerings and are excited about the role our strategy can play in ALTI’s innovative structure,” said John Lidington, Co-Portfolio Manager of Liquid Private Equity Alternative at Man Numeric. “We originally created our liquid PE strategy to help with cash management within institutional PE portfolios and can now extend that offering to the high-net-worth space through this collaboration with ALTI, allowing retail investors the same exposure to key private equity return drivers without the lockup.”
During an initial launch and ramp-up period, the Fund expects to allocate significant assets to the Sub-Adviser. After the Fund has raised sufficient capital1 (approximately $30,000,000, subject to Board approval), the Adviser expects to begin making capital commitments to and purchasing Private Equity Investments.
ALTI’s mission is to create a more inclusive and equitable financial system. The company grew out of a simple belief: the most compelling investment opportunities should be made available to a greater number of people. ALTI is committed to breaking down the barriers that have traditionally prevented individuals from accessing high-quality private equity investments.
The fund held its organizational board meeting earlier this year and elected three veteran asset management executives to independent director positions who will represent the fund’s investors. The independent directors are Michael Singer (Former CEO of Ramius Capital, a $12 billion AUM asset manager), Jeff Gary (Former Co-Head of High Yield, Bank Loan, CLO, and Distressed Credit at BlackRock), and Maureen O’Toole (Former Managing Director & Head of Alternative Investments Private Client Sales at Morgan Stanley).
ALTI has has a strategic relationship with Pacific Current Group (“PAC”), a multi-boutique asset management business whose portfolio companies manage over $120 billion in AUM.
PAC Vice President Curtis Yasutake stated, “PAC is excited to partner with ALTI. There is substantial unmet demand for institutional-quality private equity investments among individual investors. We expect ALTI’s products to cater to this demand and believe the firm’s approach to private equity investing is differentiated compared to other retail offerings.”
Other notable venture investors or corporate advisors to ALTI2 include Stephen Siderow (Co-Founder, BlueMountain Capital), Michael Resnick (Founder, Tallwoods Multi-Family Office), Deirdre Bigley (Former Chief Marketing Officer, Bloomberg), Scott Evans (Former Chief Investment Officer, NYC Pension), Ryan Feit (Founder, SeedInvest), and Nicolas Motely (Managing Partner, Oaktree and former MD, Oaktree).
About ALTI Financial
ALTI Financial (‘ALTI’) is an asset manager broadening access to institutional private equity for individual investors. ALTI’s mission is to create a more inclusive and equitable financial system, committed to breaking down the barriers that have traditionally prevented individuals from accessing high-quality private equity investments. Led by professionals with decades of experience from PE’s largest institutions, ALTI is primarily backed by Pacific Current Group, a publicly traded, multi-boutique asset management investor. Further information can be found at www.altifinancial.com.
About Man Group
Man Group (‘Man’) is a global, technology-empowered active investment management firm focused on delivering alpha and portfolio solutions for clients. Headquartered in London, Man Group manages $151.7 billion* and operates across multiple offices globally. Man invests across a diverse range of strategies and asset classes, with a mix of long only and alternative strategies run on a discretionary and quantitative basis, across liquid and private markets. The investment teams work within Man’s single operating platform, enabling them to invest with a high degree of empowerment while benefiting from the collaboration, strength, and resources of the entire firm. The platform is underpinned by advanced technology, supporting the investment teams at every stage of their process, including alpha generation, portfolio management, trade execution and risk management. Man Group plc is listed on the London Stock Exchange under the ticker EMG.LN and is a constituent of the FTSE 250 Index. Further information can be found at www.man.com *
As at 30 June 2023. All investment management and advisory services are offered through the investment “engines” of Man AHL, Man Numeric, Man GLG, Man Solutions / FRM and Man GPM.
PROVIDED FOR INFORMATIONAL PURPOSES ONLY. This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors. Investing entails risk, including the possible loss of principal. There can be no assurance that any investment or asset class will provide positive performance over any period of time. Past performance does not guarantee future results.
The statements contained herein reflect the opinions of ALTI, LLC (“ALTI”) as of the date written. Certain statements are forward looking and/or based on current expectations, projections, and information currently available to ALTI. Such statements may or may not be accurate over the long-term. While we believe we have a reasonable basis for our comments and we have confidence in our opinions, actual results may differ from those we anticipate. We cannot assure future results and disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise. Statistical data was taken from sources which we deem to be reliable, but their accuracy cannot be guaranteed.
ALTI, LLC, is a registered investment adviser.
1The Fund must raise sufficient capital (approximately $30,000,000, subject to Board approval) within one year of the date of this prospectus before the Adviser will be permitted to begin purchasing and/or making capital commitments to Private Equity Investments on behalf of the Fund. If the Fund does not raise such sufficient capital within such time period, the Fund will liquidate its holdings and return capital to shareholders.
2Past success of Firm affiliates is not an endorsement or guarantee of the Fund’s future success.
An investor should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information can be found in the Fund’s prospectus. To obtain a prospectus, please call (347) 644-2066. Please read the prospectus carefully before investing.
Investment in the Fund is speculative and involves substantial risks, including the risk of loss of a Shareholder’s entire investment. You should consider the shares to be an illiquid investment. An investor’s participation in the Fund is a long-term commitment, with no certainty of return. No Shareholder or other person holding Shares acquired from a Shareholder has the right to require a Fund to repurchase any Shares. No public market for Shares exists, and none is expected to develop in the future.
The Fund is a newly formed investment company with no operating or performance history that Shareholders can use to evaluate the Fund. The Adviser is newly formed and, as a result, has not previously served as investment adviser to a registered investment company. As a start-up company, the Adviser has no operating history and has limited liquidity.
In pursuing its investment objective, during an initial launch and ramp-up period, the Fund expects to allocate significant assets to the Sub-Adviser (Man Numeric). The Sub-Adviser will manage such allocation in a manner which seeks to build a portfolio of cash, cash equivalents, and a public equity strategy that seeks to generate a return profile that is similar to the U.S. buyout segment of the private equity market. The percentage of the Fund’s assets allocated to the Sub-Adviser is expected to decrease as the Fund consummates Private Equity Investments.
There can be no guarantee that any strategy (risk management or otherwise) will be successful. All investing involves risk, including the potential loss of principal. The ability of the Fund to achieve its investment objective depends, in part, on the ability of the Private Equity Investors to source and diligence appropriate Private Equity Investments for the Fund, and for the Adviser to choose and effectively allocate the Fund’s assets among such Private Equity Investments. There can be no assurance that the actual allocations will be effective in achieving the Fund’s investment objective or delivering positive returns. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund and may be subject to greater risks and fluctuations than a portfolio representing a larger number of holdings. Shareholders will pay a pro rata share of asset-based and carried interest fees associated with the Fund’s underlying investments and may be subject to a higher level of expenses than other types of investment entities as a result. All or a portion of a distribution may consist solely of a return of capital (i.e., from your original investment) and not a return of net profit. Shareholders should not assume that the source of a distribution from the Fund is net profit. Shareholders should note that return of capital will reduce the tax basis of their Shares and potentially increase the taxable gain, if any, upon disposition of their Shares. Please see the prospectus for details of these and other important risk considerations.
The ALTI Private Equity Access and Commitments Fund is distributed by UMB Distribution Services, LLC, which is not affiliated with ALTI Financial.
About Havener Capital Partners
Havener Capital Partners is a sales and marketing agency dedicated to boutique asset managers. Helping some of the world’s most talented investment firms build, launch, and grow funds is important not only for our clients, but also for investors and the industry. Whether it’s testing funds in the market, expanding sales and marketing capabilities, or securing investments from our network of RIAs and family offices, we provide clients with an expert team and a time-tested framework that has raised over $8 billion dollars for boutique funds that led to over $30B in follow-on AUM. More information is available by visiting: havenercapital.com
Havener Capital Partners LLC is an institutional division of Compass Securities Corporation. Securities offered through Compass Securities Corporation. Member FINRA SIPC. 50 Braintree Hill Office Park, Suite 105, Braintree, MA, 01284; T:781-535-6083