We aim to be the home team for our clients by combining meaningful alignment with a fully resourced investment and client team. With only a small number of clients per partner, we construct portfolios foreach client in the context of their own financial big picture
We apply an endowment-style investment approach to promote long term capital growth for our clients. This approach has the following key characteristics:
Private investments form a core part of the ‘endowment model’ for clients who have a sufficient time horizon to commit capital on a multi-year basis. Investors in thoughtfully selected private investment funds have historically benefited from the illiquidity premium (i.e. excess returns over public market equivalents) as well as the potential for significant alpha through selection of leading funds across multiple vintage years.
Our team has built up an extensive network of GP relationships over 20+ years of investing in private markets. We build portfolios of high quality, hard to access private funds diversified by size, geography and strategy. These are complemented with exposure to our Direct Private Equity co-investments.
Our approach to investing in Private Equity exhibits the following key characteristics:
Efficient Deployment
A disciplined, systematic approach to deploying capital is the key to generating attractive long-term returns.
Concentrated Portfolios
Focus on a core group of managers to create well diversified portfolios that are low risk in aggregate.
Privileged Access
Close relationships with often hard to access GPs, having advised on over $7bn of commitments to private strategies over two decades.
Co-Investments
Up to 25% in co-investments and direct investments enhances returns and reduces the J-curve by deploying capital in years 1 and 2.
Our ‘Core’ private equity programme focuses primarily on mid-market funds in the US and Europe and comprises 10-15 core GP relationships overall.
Our ‘Growth’ programme focuses on growth equity, bootstrapped growth and venture capital managers in the US and Europe and comprises 10-15 core GP relationships overall.
In addition to private equity, we make opportunistic investments in other private investment strategies such as private credit, real estate and royalties.
Eighteen48 Partners invests alongside Emerging Managers (i.e. Funds I to III and fundless sponsors) and our GP relationships to build a diversified portfolio of direct private equity investments.
Our strategy is focused on mid-market buy-out (€100m-€1bn enterprise value) and late stage growth companies in Europe and the US, targeting a minimum net return of 2x / 20% IRR.
We have an active portfolio across seven geographies in Europe and North America. To date, three quarters of these transactions have been sourced through our network of highly aligned Emerging Managers.
Emerging Managers invest significantly in their transactions and are aligned to returns, and not management fees on committed capital.
Dedicated investment team with deep network across the private equity landscape. Investment Committee made up of experienced private equity professionals, who invest in every deal.
Deal flow across the entire PE landscape to identify the best opportunities and ensure steady deployment across vintage years.
Differentiated deal flow with focus on emerging managers rather than ‘more of the same’ manager and company exposures.
Institutional grade due diligence on both the sponsor and company, often acting as ‘co-underwriters’ alongside sponsors.
Portfolio of 15 active investments with strong performance and three material liquidity events since inception in 2020.
Active programme for institutions and family offices interested in partnering with Eighteen48 Partners to deploy capital into differentiated emerging manager deal opportunities over a pre-defined period.
We invest directly in global equities by building a concentrated portfolio of high quality companies that enjoy secular growth prospects and which we can acquire at a reasonable price.
We invest in equities globally in a concentrated manner for the long-term. We believe that very few asset classes have the superior reinvestment and compounding capability that equities offer. This along with their unique upside/downside characteristics make it an attractive asset class.
With the right unit economics and a superior management team capable of scaling the business, an equity investment has unlimited upside i.e. can be a multi-bagger, while the downside is limited to 100%. Few asset classes have this privileged risk-reward profile.
We seek to invest in public companies worldwide with exceptional earnings growth, driven by a sustainable competitive advantage, superior financial strength and proven management teams. Investing in “best of breed” companies with secular long-term growth opportunities can help us to deliver outsized returns and minimize risk.
We believe consistent earnings growth is the primary driver of intrinsic value and long-term stock price appreciation. We focus all our intellectual power on identifying and building concentrated portfolios of companies that we believe can deliver sustainable, above-average earnings growth.
Over the years we have developed and honed a repeatable process to identify suitable candidates for our portfolio. Our investment process can be broadly summarised as follows:
Stock Universe
We look globally and focus on companies with a market capitalisation of >$1.0bn.
We apply proprietary and time-tested financial criteria to identify quality growth companies as candidates for our portfolio.
Preliminary Assessment
We conduct a preliminary qualitative assessment to understand the target company’s business model and industry characteristics and re-confirm adherence to our financial metrics.
Deep Dive & Internal Memo
We undertake an in-depth study of the company’s business model, industry characteristics as well as carry out an intrinsic value assessment. This step involves establishing contact with the company’s management, assessing industry peers etc. Our findings are summarised in an internal memo and discussed internally.
Portfolio Construction
We size the investment position to be in line with our risk control rules, conviction levels and add it to the portfolio.
Ongoing Monitoring
We monitor the company assiduously on an ongoing basis. Should any of the below scenarios arise, were-evaluate and consider exiting the position:
For further information, please email direct.pe@eighteen48.com
