Our aim is to limit our global fund mandates to between six and eight at any given time; with a primary focus on fund opportunities of between $200 million and $2.0 billion in size. This limitation ensures that we can dedicate senior partner-level attention to every client.
Our platform is global and we source capital from institutional investors around the world. We have close relationships with every class of investor including: public pension plans, sovereign wealth funds, consultants, funds of funds, insurance companies, corporate pension funds, endowments and foundations, family offices and wealth advisory firms. The strength of our LP relationships is derived from our reputation as a thought leader within the private equity industry and from the highly selective process we follow in adding a new client to our platform. In many ways, our rigorous screening and due diligence process emulates the process performed by the investors we cover.
We combine a top-down and bottom-up segmentation into a single figure process that enables us to screen and measure each opportunity against five key points of valuation: (i) team cohesion (ii) track record attribution (iii) sourcing and operating advantage (iv) global and local market positioning and (v) sector and industry dynamics. This combination provides a final segmentation that draws on the relative merits of both approaches and results in a confidence map of those managers most likely to outperform the broader market and deliver superior returns to the investor community.
Sixpoint’s Capital Solutions team provides leading advice and execution to private equity sponsors and institutional investors seeking secondary liquidity and related capital solutions. The team prides itself on being a high-touch advisor of choice known for its execution, positioning, and structuring expertise. Sixpoint has extensive experience in innovative GP-led secondary solutions, including continuation vehicles, fund recapitalizations, preferred equity, NAV-based loans, asset spin-outs, and primary staples.
While the Capital Solutions team has experience across a broad range of transaction types, structures, and sizes, Sixpoint primarily focuses on advising middle-market sponsors through the recapitalization of a single fund or a single asset. Due to our focus on concentrated portfolios, we live at the intersection of corporate finance, private fund advisory, and equity placement.
We measure success based on our ability to deliver a market-clearing price as well as an optimal structure for GPs and LPs. We achieve such success by tailoring transactions to address the liquidity and capital needs of our clients – whether the goal is simply liquidity, or a much broader solution to catalyze a new or existing investment strategy.
We work with financial sponsors to efficiently source co-invest capital when fund limitations keep the GP from financing the entire transaction. Strategically placed co-investors can serve as more than a source of capital. When sourced and structured properly, co-investors also help GPs to broaden the reach and profile of their limited partner base and to increase a GP’s revenues.
With the market evolving towards a no-fee/no-carry model on co-investments, intelligent structuring assists GPs in making maximum use of our diverse and wide-ranging relationships in the institutional investor universe. For these LPs, the co-investment is a means to diversify their exposure to existing fund managers, strategies and geographies, as well as the opportunity to enhance overall portfolio returns, especially given the cost-effective fee structure compared to a traditional fund investment.
Our GPs have raised co-invest capital on a fee/carry basis and as a means of securing new relationships and primary LP capital for present or future fundraises.
