Private Equity

 

Diversification is the risk management strategy of creating a mix of various investments within a portfolio with different characteristics to reduce volatility. But what happens when a portfolio’s risk isn’t fully mitigated by diversifying amongst traditional asset classes?

What is Private Equity?  

Private Equity (P.E.) investments provide a way to further diversify a portfolio.

Traditionally these investments have only been accessible to the Ultra High Net Worth investor (UHNW), institutional investors like the Canada Pension Plan (CPP) or the Ontario Teachers Pension Plan and a select group of specified investors. Today, because of our access to the BMO Family Office, select clients can now gain access to Private Equity investments previously unavailable to them.

Private Equity Investments are primarily separated into 3 main categories:

• Secondaries

• Buyouts

• Venture Capital, and

• Special Situations

 

P.E. is not for every investor, however, as it conveys a unique set of characteristics, factors of performance, regulatory requirements and risks that are not only independent of traditional investments (like stocks & bonds), but also from one investment to the next. For this reason, due care should be taken when investing a portion of your portfolio in P.E.

It’s integral to have a well laid out plan and strategy in conjunction with your overall wealth goals. Inclusive of our investment management services, our clients benefit by gaining access to:

 

Exclusive Access

• • Opportunity to access institutional mandates at attractive minimums, only available to BMO Private Wealth Clients

Consistent Product Pipeline

• • Build your own institutional quality private markets portfolio through regular access to deal flow

Deep Research Expertise

• • Our cross-boarder Private Markets Research team has over 15 years experience recommending top caliber strategies

Canadian-Friendly Investment Vehicle

• • Designed to minimize tax and structuring burden, while providing access to top performing global investment managers

Independence & Objectivity

• • Independent advice and extensive due diligence, approving less than 2% of strategies reviewed

Investment Planning

• • Endowment style investment deployment designed to minimize risk and achieve desired asset allocation mix

  • Customized asset allocation recommendations 

 

The Hauser Wood Ma Jorgenson Process:

The starting point of any specialized investment strategy is understanding your goals. Having a personalized Wealth Plan and a deep understanding of your road map, we can discern if private equity is a strategy fit for you.

If your portfolio would benefit from P.E., we start the conversations with our partners at BMO Family Office. Our clients gain access to curated deal flow that has been rigorously examined through a defined due diligence process. Only 2% of the deals make it through this screening process.

Due to the scale of BMO Family Office, the deals that come available to our clients have specific characteristics that would not be available to any individual investor that participates directly in a Private Equity funding round. 

We work closely with our Alternative Strategists to customize an alternatives strategy to fit the purpose and goals of for your wealth to amplify your current portfolio. On an ongoing basis, our team will bring forward the most appropriate of these pre-vetted deals that lie in scope of your family’s long-term goals.

Lastly, like any other investment strategy, we implement the suggestions, test portfolio performance against its investment mandate, and make tactical decisions to optimize the portfolios performance on an ongoing basis.