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Case Study: Providing the Solution: Fund of Funds

calendar_today November 6, 2019

PPB Capital Partners brings premier alternative investment solutions to the private wealth community nationwide.  We understand that the process of investing in alternative investments is challenging. We handle all the heavy lifting so you do not have to worry about these logistical challenges.  By outsourcing fund administration and daily management of your fund to PPB, you can focus on your core advisory competencies.  As a fiduciary, PPB has a responsibility to your client just as you do. Your client’s investment is our main focus. Here is a common scenario of how PPB provides the solution for independent wealth advisor.

Situation:
Advisor wanted to create a customized fund of funds that provided clients access to private equity, venture capital, real estate, co-investments and direct investments.

Challenges the Advisor faced:
• Ensure investment diversity and risk adjusted returns through a single, low cost vehicle
•  Clients were required to sign multiple subscription documents
•  Time spent repeatedly contacting client for capital calls
•  Wavered between taking on both General Partner (GP) and investment manager roles
•  Desired equal access for a mix of both accredited and qualified investors

PPB’s Solution:
•  Designed and built a custom fund of funds and accepted a $20M capital commitment at first close
•  This single structure allowed the advisors’ clients to sign one subscription document
•  Efficiently called capital by reducing the quantity of the number of capital calls throughout the lifecycle
•  Accepted responsibility of multiple risks associated with the General Partner fiduciary role
•  At final close, capital commitments exceeded $50M and annual operating costs were lowered to less than 10 bps