NEW YORK | August 16, 2017 – Earlier this summer, Drake Star Partners’ Managing Partner and Co-CEO Gregory Bedrosian was interviewed by Paul Golden from International Investment. Mr. Golden was interested in hearing Gregory Bedrosian’s thoughts on family offices’ growing interest in private equity co-investment opportunities.
Citing what he observes as an increasing interest from the more sophisticated end of the family offices spectrum, he said:
“Even five or ten years ago it would have been rare for a family office to get directly involved in a private equity transaction, but there has certainly been year-on-year growth in activity in the sectors we are involved in – technology, media and telecoms – albeit from a low base.”
“Fees and value add are two of the key factors driving private equity co-investment by family offices. Co-investment offers the opportunity to invest without the typical 2% management fee and 20% carried interest to the fund manager. However, it incurs additional costs, such as the requirement to employ in-house investment professionals, who will generally demand incentive-based compensation.”
This article was originally published on July 26, 2017 on International Investment’s website. Click here to read the full article.
By way of background, Drake Star Partners introduced its own private equity co-investment activity back in November 2016. The investments are made with its own capital in partnership with like-minded co-investors consisting of partnerships on behalf of some of the world’s largest multi-billion-dollar single family offices.
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