ALTERNATIVES

Private capital and hedge fund investments can help organizations pursue returns above and beyond traditional equity and fixed income investments and mitigate portfolio impact  from outsized losses during periods of market volatility, economic downturns or both.

These types of investments aren’t without challenges:

• Investment—especially in the private space—mean assets can be locked up for years which can translate into unintended consequences for other areas of an organization’s financial health
• Even meeting the regulatory requirements doesn’t mean direct investment in these types of opportunities makes sense for all but the largest investors
• The most popular of these investments often quickly become over-subscribed or closed due to demand
• Private capital investments can be more expensive compared to publicly offered investments.

Recognizing these challenges, many institutions have explored the potential risks and rewards associated with these investments and chosen to incorporate them into their overall investment plans.

FEG has been guiding clients of all sizes through these conversations for years:

• Relying on the experience of our people and proprietary technology, we can educate organizations about the potential risks as well as the potential rewards; we can model implementation in a way that seeks to minimize the potential impacts of such investments on the financial health of the organization
• FEG possesses a wide range of implementation solutions, which means smaller clients can access the potential of these types of investments without having to possess the hundreds-of-millions of assets that could be required to make direct investment sensible
• FEG has dedicated analysts to these types of assets. Not only do we research and monitor classes and managers, we maintain relationships, which enables us to help clients invest in closed or oversubscribed opportunities