Research house, Zenith Investment Partners, has awarded a ‘recommended’ rating to Schroders Global Private Equity fund which provides an exposure to private equity in a semi-liquid structure.
Zenith’s rating was based upon based upon the team’s breadth and depth of experience in the asset class, the experience and calibre of the investment committee, its conviction in the comprehensive and repeatable investment process, as well as benefits from Schroders’ institutional infrastructure, the research house said.
In particular, Zenith highlighted that Schroder Adveq, Schroders’ dedicated private equity team, was aimed at the small to medium end of the private equity opportunity set with the scope to invest in niche and growth stage capital. This small-cap focus typically resulted in less competition from large private equity managers, allowing the firm to invest in companies/funds on more attractive earnings multiples.
Zenith believed the fund’s cost structure was highly attractive relative to peers with a competitive management cost and no performance fee while its absence of a performance fee was a differentiating feature, and positioned the fund as an attractive entry point for fee-conscious investors seeking exposure to a semi-liquid private equity strategy.
“The fund provides investors with access to the often hard-to-reach global private equity markets, offering a broader universe of companies than those listed on public exchanges, including many early stage and growth-orientated companies,” Chris Durack, chief executive officer of Schroders Australia, said.
“In a climate of lower interest rates and elevated valuations, investors may be looking for a new way to generate returns or seeking diversification away from traditional listed equity and fixed income markets.”
The fund’s investment objective was to generate an absolute internal rate of return of 10% to 12%, net of fees, over periods of five years and longer and providing investors with the opportunity to access their capital on a quarterly basis (capped at 5% of the net asset value).
