Private Equity investors typically target an IRR of 15% up to 30% and multiple on costs of 2.5 times to 3.0 times over an investment-holding period of 4 up to 6 years. FGB has been quite active in this asset class and has committed and invested in substantial proprietary along with client capital in global private equity funds and single deals. The unit is active in all major private equity strategies (Buyouts, Secondary's, Mezzanine, and Venture Capital) and has exposure to all major markets including North America, UK, Europe and Asia Pacific. The focus is on quality and diversification across private equity strategies, sectors, GPs, vintages, and geographies.
Private Equity is a great asset class for long-term investors. Majority of the private equity capital is managed via Limited Partnership Structures.
The US, UK and Europe have been the largest markets in terms of size and deal making. Japan, Korea, China and India have also attracted major private equity players and the private equity activity in these markets is on the rise.
Interest of private equity investors has grown tremendously in large mega deals and given the robust outlook for global M&A activity and de-regulation, privatization trends globally; Private Equity is destined to grow further as an asset class over the foreseeable future.
Given its nature, private equity's performance is better assessed over longer holding periods, where it has significantly outperformed other asset classes. In particular, medium and large cap buyout funds have shown impressive risk-adjusted returns. Private Equity is a great tool for diversifying traditional portfolios and given its long term nature has the compounding effect on returns!
Investors can gain exposure to a large variety of strategies, deal types, sectors, and vintages. While private equity has produced superior results as an asset class, top-deciles private equity funds' average net IRR is well above 20%, a differential of at least 10% with average private equity industry returns, over the last 15 years.
FGB's private equity team is uniquely positioned to provide quick access to world's most exclusive private equity funds and single deals. In keeping with all the customers' investment profile and objectives, we can structure and manage a robust global private equity program.
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