Private Equity
Enabling a global institutional client base to invest broadly across the private equity asset class through diversified portfolios of highly sought-after managers and co-investment opportunities for nearly four decades.
For institutional investors
Private market expertise with a successful, repeatable process
Our team has been investing in private markets for nearly 40 years. Our approach leverages the firm's synergistic partnership investment and co-investment activities to identify and select investment opportunities characterized by appropriate purchase price multiples, positive and growing cash flows and successful, repeatable models to improve portfolio company operations. Over the years, we have consistently identified high-performing partnership, secondary and co-investment opportunities in North America and Europe.
Mesirow Private Equity investors benefit from the firm's competitive advantages:
“Our deeply experienced team leverages relationships with some of the world’s leading private equity firms to build durable portfolios for our valued clients and their consulting partners.”
Bob DeBolt | CEO, Mesirow Private Equity
Investment strategies
Mesirow Private Equity has a unique team approach to the private equity market that includes expertise in primary partnership investments, secondary investments and co-investments executed by highly experienced professionals with demonstrated investment judgment who have managed through multiple economic cycles.
Mesirow Private Equity seeks access to newly formed funds of top-performing managers. Since these funds are often highly sought-after and generally oversubscribed, the investment team works to identify and build relationships with these managers in advance of their fundraising processes. We have pursued this strategy since our first Fund-of-Funds in 1999 and have developed strong relationships with a subset of what the firm believes to be among the industry's most elite general partners.
OBJECTIVE
The objective of our primary partnership strategy is to identify and access a subset of the highest-quality private equity funds in developed markets.
Investment strategy
Throughout the primary partnership investment process, Mesirow Private Equity focuses on investing with managers who have established top-tier franchises and developed sustainable competitive advantages in their industry or area of strategic focus. We target investments in funds managed by firms that have produced consistently strong investment performance, realized low loss rates on invested capital and built deep, stable teams of outstanding professionals with investment, operational and other skills and experience appropriate to their particular strategy and focus.
PORTFOLIO CONSTRUCTION
A core tenet of Mesirow Private Equity's portfolio construction strategy is that investing in fewer funds, only 8 to 12 funds each year, allows exceptionally performing funds to impact the overall portfolio while still providing diversification by manager, vintage year and sub-asset class strategy. By optimizing capital under management, we retain the ability to remain highly selective, which the firm expects will provide the greatest potential for top-quartile investment performance.
Through our secondary investment program, we partner with a subset of the industry’s leading general partners to recapitalize marquee assets that are poised for continued value creation through general partner-led (“GP-led”) secondary vehicles. We believe this evolving opportunity set offers private equity return potential with balanced risks and strong alignment of interests. On an opportunistic basis, we will also seek to acquire limited partner interests through more traditional secondary investments where we believe we have unique insight or an information advantage.
OBJECTIVE
Generate attractive risk-adjusted returns by constructing a high-quality, concentrated portfolio of GP-led secondary investments balanced with opportunistic traditional secondary investments that help mitigate the j-curve and drive early performance.
Investment strategy
Our secondary investment strategy leverages our deep industry relationships and proven underwriting experience to source and evaluate GP-led transaction opportunities in marquee companies poised for continued value creation. By assembling a curated portfolio of high-quality GP-led assets alongside an opportunistic mix of traditional secondary interests, we believe we can generate compelling investment performance with low loss rates on invested capital.
PORTFOLIO CONSTRUCTION
We intend to build a focused portfolio of GP-led secondaries, with an opportunistic allocation to traditional secondary investments. Our GP-led investments will focus on recapitalizing market-leading companies alongside proven sponsors capable of driving continued value creation. The portfolio will also include traditional secondaries acquired on an opportunistic basis, which will allow us to invest in established portfolios where we have a differentiated perspective on future value creation.
Our co-investment program provides an opportunity to invest in a portfolio of individual company investments alongside some of the industry's top-performing private equity managers.
OBJECTIVE
Leverage a subset of Mesirow Private Equity's trusted relationships to source proprietary buyout, growth equity and late stage venture capital co-investment opportunities.
Investment strategy
Co-investment opportunities are evaluated with the goal of identifying companies with the following characteristics:
-
Positive and growing cash flows
-
Low capital expenditure requirements
-
Valuable intellectual property portfolios
-
Experienced management teams with a track record of success in a specific industry
-
Stable / non-cyclical products or services
Mesirow Private Equity believes that opportunities with these characteristics will reduce the operational and financial risk of a co-investment, while offering the opportunity to achieve outsized returns through the execution of growth and operational improvement initiatives.
PORTFOLIO CONSTRUCTION
Our co-investment program explores opportunities that include growth financings and leveraged buyout transactions in a variety of sectors, primarily for companies operating in North America and Western Europe. Despite an opportunistic approach, Mesirow Private Equity co-investment portfolios have historically demonstrated balanced sector exposures, including information technology, business services, industrial, healthcare, consumer and telecommunications.
Investors access Mesirow Private Equity's investment strategies through commingled funds and single investor vehicles (fund-of-ones and separately managed accounts). Mesirow Private Equity's single investor vehicles can be customized to each individual client, offering the ultimate flexibility around investment strategy, client involvement and pricing.
In the news
Senior leaders
Explore
Spark
Our quarterly email featuring insights on markets, sectors and investing in what matters
Data as of 6.30.2020.
Nothing contained herein constitutes an offer to sell nor a solicitation of an offer to buy an interest in any Mesirow investment vehicle. Any offer can only be made to qualified investors through the appropriate Offering Memorandum. The Memorandum contains important information concerning risk factors and other material aspects of the investment and should be read carefully before an investment decision is made. Mesirow Financial Private Equity Partnership Investments are managed by Mesirow Financial Private Equity Advisors, Inc., an SEC registered investment advisor. Past performance is not necessarily indicative of future results. Targeted returns may not necessarily be achieved and materially different returns may be achieved.
The Mesirow name and logo are registered service marks of Mesirow Financial Holdings, Inc.