John Guinee, Co-Founder and Managing Partner of Constitution Capital Partners joined Julie Cooling, Founder and CEO of RIA Channel, at the CAIS Alternative Investment Summit to discuss the firm’s investments in private markets.
WEBCAST: Private Equity Co-Investments: An Institutional Tool for Optimizing Returns and Diversification
Constitution Capital Partners was founded in 2008 and has managed six private market funds for institutional limited partners. The firm’s private market platform is focused on the global middle market, investing in private credit as well as fund investments and co-investments in private equity. The fund of funds invests in middle market buyout funds focused on the health care, consumer, and business and industrial services sectors. The due diligence process of Constitution Capital Partners searches for fund managers with operational expertise and expertise in these specific sectors. Once the firm is comfortable with the fund managers, they may originate private credit deals in the same sectors with the same sponsors. In addition to fund investments, Constitution Capital Partners is very active in the co-investment space, investing directly in over 115 portfolio companies alongside the general partners.
There is a shrinking number of publicly traded companies, so markets see companies staying private longer. This means that an increasing portion of the increase in the equity value of companies is now found in the private markets. The firm prefers to invest in the middle market, where there is a larger number of companies that can be purchased for reasonable prices with lower levels of leverage. Companies in the middle market can work well for buyouts and add-on acquisitions. Middle-market companies can successfully improve operational efficiencies when experienced leadership from larger companies in the same industry brings best practices to these companies. After companies have been purchased for lower valuation multiples, improving operational efficiencies can facilitate exits at higher multiples.
Constitution Capital Partners has historically been an institutional manager but is now moving into the RIA space with an evergreen product available to accredited investors under the Investment Company Act of 1940. The Constitution Capital Access Fund is a tender offer fund with a low minimum investment, monthly subscriptions, and 1099 tax reporting. The fund holds primary and secondary interests predominately in US and European private equity funds as well as co-investments.
–
WEBCAST: Private Equity Co-Investments: An Institutional Tool for Optimizing Returns and Diversification
Constitution Capital Partners is a global private markets manager focused on private equity and private credit strategies across the middle market.
The Firm’s managing partners will provide an introduction to the private markets landscape and delve more specifically into the private equity co-investment model, demonstrating the attractive opportunities a co-investment strategy offers.
Large institutional investors have long since used private equity co-investments to increase their returns and reduce fees. More recently, registered 40 Act funds have made the strategy available to individual investors seeking these attributes while gaining significant diversification benefits in their broader portfolio.
The speakers will introduce the Constitution Capital Access Fund, an evergreen fund solution that offers individual investors with access to institutional-quality private equity investments through an investor friendly structure.
Accepted for 1 CFP® / IWI / CFA CE Credit