Providing non-U.S.-based clients with access to privately-owned, late stage, high growth innovation companies
Liberty Street Advisors, Inc. announced that it has entered into a strategic partnership with GAM Investments to provide clients with access to high-quality late-stage privately-owned technology and innovation-driven companies for non-U.S. investors.
The team at Liberty Street currently manages just over $800 million of assets as of February 13, 2022, in a closed end interval fund for U.S. Investors, The Private Shares Fund (PIIVX). They are deeply experienced in private markets investing in the United States and have an extensive track record investing in late stage, high-growth innovation companies. In partnership with GAM, Liberty Street plans to launch a capability which will leverage the extensive knowledge of Liberty Street’s private markets investment team. This capability will give non-U.S. based investors the opportunity to gain exposure to a market which has historically been difficult for them to access.
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Growth equity is a segment of the private equity asset class which sits between venture capital and traditional private equity. The growth equity asset class has expanded with disruptive technology-driven growth across multiple sectors and industries. This growth has led to a proliferation of potential unicorns, with more than 900 venture capital backed companies currently valued at over USD 1 billion as of December 31, 2021, and many more on a similar trajectory.1 By investing in these types of late-stage high-growth, innovation companies Liberty Street seeks to participate in their potential appreciation while they are under private ownership.
“We are seeing companies stay private for longer, driven primarily by regulatory changes, ease of business model development in the private sphere and a larger pool of available private capital,” said Kevin Moss, Managing Director at Liberty Street.
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“A significant portion of these companies’ value appreciation occurs prior to entry into the public markets, at mid or large cap size,” said Mr. Moss. “We believe that late-stage, private growth companies can present an attractive balance of risk and return for investors, compared to early-stage venture investments and public equities.”
“We are delighted to partner with Liberty Street to provide our clients with access to leading privately-owned companies,” said Peter Sanderson, Group Chief Executive Officer at GAM Investments. “The team at Liberty Street has deep, multi-decade investing experience, as well as established relationships within the venture eco-system, and is an ideal partner for us.”
“An increasing number of our clients are seeking to diversify their portfolios by including longer-term private asset investment strategies,” said Mr. Sanderson. “In our view, privately-owned companies in their later-stage non-public funding rounds could offer investors strong long-term performance potential and makes this asset class attractive for portfolio diversification.”
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