1) Formation & Management of a Feeder Fund

Client Profile:

• Wealth management team recently left large broker dealer to form an independent registered investment advisory (RIA) firm

Opportunity:

• RIA wanted access to a private equity fund who had a $10M minimum

Challenges:

• RIA wanted to replicate the back office services that the large broker dealer previously provided
• RIA lacked experience in developing, launching and managing a private feeder fund internally
• RIA was unable to maintain operational and compliance standards of a limited partnership structure
• RIA needed a larger investment base in order to achieve economies of scale

PPB’s Solution:

• PPB designed and built a feeder fund and accepted a $15M capital commitment at first close
• PPB replicated the structure and terms of the underlying fund to ensure the integrity of the investment
• PPB managed all daily operational responsibilities of the structure
• PPB secured a quality network of counterparties to offer the RIA the most efficient providers
• PPB added investors through seven additional RIA firms, reduced operating costs by 3.5x and achieved $70M at the final close

 


 

2) Formation & management of a Customized Fund of Funds

Client Profile:

• Established registered investment advisor (RIA) with over $3 billion of assets under management

Opportunity:

• RIA 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:

• RIA needed to ensure investment diversity and risk-adjusted returns through a single, low cost vehicle
• RIA clients were required to sign multiple subscriptions and suffer through exaggerated capital calls
• The RIA wavered between taking on both general partner (GP) and investment manager roles verses outsourcing GP responsibilities

PPB’s Solution:

• PPB designed and built a custom fund of fund and accepted a $20M capital commitment at first close
• PPB created a structure that limited multiple subscriptions and decreased capital calls
• PPB accepted the responsibility of the multiple risks associated in the General Partner role
• PPB offered RIA unique, differentiated alternative investment opportunities for clients and prospects
• PPB’s committed capital exceeded $50M and annual operating costs achieved ten basis points at final close

 


 

3) Bypassing PPB’s fund structuring apparatus and investing directly with a manager

Client Profile:

• Multifamily office (MFO) with over $5 billion in assets under advisement with $50M average client

Opportunity:

• MFO investment committee expressed interest in allocating capital to a fund that focused on purchasing infrastructure assets (ports, airports, bridges, etc.)

Challenges:

• MFO had limited staff to search for private equity opportunities
• MFO’s manager search and selection was hindered by lack of resources
• MFO’s operational due diligence capabilities were limited by a small staff of CFAs
• MFO’s high net worth client base was a potential deterrent to institutional infrastructure fund

PPB’s Solution:

• PPB’s feeder fund structures and coincidentally one of the five made infrastructure investments
• PPB made a direct introduction to portfolio manager of PPB’s infrastructure fund
• PPB made the direct introduction and retreated from the conversation in order to allow the MFO’s three CFAs to execute on due diligence
• MFO made a $24M investment on behalf of two clients—$19M and $6M respectively

 


 

 4) General Partner (GP) Takeover of Existing Internal Proprietary Fund/s

Client Profile:

• Established registered investment advisory (RIA) firm with over $1.5 billion of assets under management

Opportunity:

• RIA wanted to outsource two established proprietary private funds with over $60M of total assets

Challenges:

• RIA daily fund operations bogged down back office and escalated fund costs
• RIA experienced increased opportunity costs by operating fund internally
• RIA struggled with identifying potential private fund compliance risks
• RIA’s core competency was manager search and selection, not a fund operator

PPB’s Solution:

• PPB delivered a non-burdensome consent solution, became GP and relieved RIA back office
• PPB eliminated opportunity costs by allowing RIA back office to refocus on core roles
• PPB became operating fiduciary of the funds and accepted compliance risks
• PPB’s scale reduced operating costs for RIA clients