Author: Amy Paterson

Discover the potential of independent sponsors in private equity investments with our insightful white paper authored by Stephen Williams, CFA, and Brendon Parry, CFA.

Key Takeaways:

• The Hidden Gem of Lower Middle Market: Explore why the lower middle market, often overshadowed by larger firms, offers unique opportunities for private equity investors. Learn how we believe the lower middle market’s less competitive landscape, coupled with operational improvement potential, makes it an attractive space.
• Navigating Complexity: Understand TIFF’s approach to identifying, evaluating, and structuring transactions alongside independent sponsors.
• Case Study – Monogram Capital Partners: Gain valuable insights as we analyze TIFF’s long-standing partnership with Monogram Capital Partners. See how we believe investing alongside independent sponsors may lead to returns by acquiring and improving lower middle market businesses.

Download the paper now: Independent Sponsors: Rising Significance of the Lower Middle Market

TIFF has a long history of making “opportunistic” private investments. The label can easily be misunderstood. To some, “opportunistic” may sound short term and risky or imply some sort of exception to an otherwise well-founded, long-term strategy. Sometimes the difference between a single, off-the-beaten-path investment and a less traditional but long-term strategic investment approach may seem blurry, especially to our members, who aren’t with us analyzing investments every day. In the past, we at TIFF even employed a fund category labeled “opportunistic” for many of our direct investments in companies alongside our managers and investments in fund interests acquired on the secondary market. The category was more of a convenience than a statement about ranking assets or strategies. The fact is, thinking of secondaries and direct PE investments as somehow outside the bounds of a core private investment approach devalues the importance of this form of investing to our PE program.

This is an excerpt from a longer article. Please download the PDF to read more.

Note: This article was first published in March 2017; it has been updated in September 2023.

Strategy Director Spotlight Series: Secondary Schools
Embracing the Endowment Model and Fighting the Tide of Restricted Giving

When people classify nonprofits by type, higher ed institutions are often grouped together. In truth, private colleges and private secondary schools are much more aligned with each other than public and private higher ed. They tend to have additional expenses – which usually mean greater endowment dependence for private higher and secondary ed institutions.

They are also vulnerable to increasingly restricted donor giving, which is affecting all nonprofits.

Finally, private secondary schools face another hurdle: The size of their endowments can sometimes be too small to allow for a fully diversified portfolio – particularly among alternatives.

How should private secondary schools combat these challenges? Click here to find out.

If you have questions about alternatives implantation given your organization risk, liquidity, and spending needs, please reach out to your TIFF member strategy director, or contact TIFF to learn more.

The materials are being provided for informational purposes only and constitute neither an offer to sell nor a solicitation of an offer to buy securities. These materials also do not constitute an offer or advertisement of TIFF’s investment advisory services or investment, legal or tax advice. Opinions expressed herein are those of TIFF and are not a recommendation to buy or sell any securities.

Kane Brenan, CEO of TIFF Investment Management, believes that the search activity for OCIOs has increased, and agrees with the notion that the hiring process has become easier with the assistance of third-party search consultants who streamline the evaluation and selection process for organizations seeking OCIO partners by providing clarity on investment approach, historical results, and fee transparency.

Read the full article: Demand growing, but searching and hiring not necessarily easier

Kane Brenan, CEO of TIFF Investment Management, highlighted in the July 17, 2023 issue of Pensions & Investments that ongoing market volatility and the complexity of investment portfolios are driving increased demand for outsourced chief investment officers (OCIOs), with asset owners turning to OCIOs for professional expertise in managing their investments, as well as for support in diversifying their portfolios and accessing specialized strategies.

Read the full article: Volatility, complex markets buoy OCIO

The materials are being provided for informational purposes only and constitute neither an offer to sell nor a solicitation of an offer to buy securities. These materials also do not constitute an offer or advertisement of TIFF’s investment advisory services or investment, legal or tax advice. Opinions expressed herein are those of TIFF and are not a recommendation to buy or sell any securities.