STRATEGY

OverviewDifferentiated
Investment Strategy
Fund portfolio
secondaries
GP-led secondariesesg

Since the establishment of our business, the Glendower Capital team has been solely and fully dedicated to secondaries. We believe that specialisation offers a distinctive advantage and reduces potential conflicts and distractions.

Glendower pursues a distinctive two-pronged strategy targeting LP fund portfolios as well as GP-led transactions to capitalize on the secondary market evolution.

Differentiated Investment Strategy

  • Seek to mitigate non-market risk through diversification across portfolios
  • Actively manage sell / roll-on fund restructurings and public markets exposure
  • Limit impact of FX volatility through active hedging program
  • Purchase fund interests at a discount to ensure downside protection
  • Strategy has led to a minimal Loss Ratio for the SOF Program
  • Leverage used as a recycling tool vs. driver of returns
  • Attractive assets managed by quality managers
  • Detailed bottom-up pricing analysis
  • Value creation through in-depth fundamental analysis vs. deal structuring
  • Diverse sourcing channels and disciplined selection process
  • Reduced unfunded exposure limits blind pool risk
  • No primary staples

Fund portfolio secondaries

We have operational scale with 40 professionals, an in-house database of over 700+funds and 300+ fund managers. We systematically underwrite $5m to $500m funds’ portfolios as well as single fund positions providing comprehensive solutions for tail-end portfolios, complex private feeder portfolios as well as difficult to value assets.

  • Tail-end portfolios, requiring operational capabilities to transact on older dated, very fragmented portfolios
  • Single LP interests with differentiated views and manager access
  • Portfolios with significant public exposure requiring access to investment banking platforms, including brokerage and hedging abilities

GP-led secondaries

Due to our reputation and long-standing experience with challenging transactions, Glendower has developed a reputation for being a reliable partner of choice for fund managers and investors. We underwrite GP-led transactions ranging from $50m to $500m including assets sales, fund recaps, strip sales, and spinouts.

  • Actively invested in manager-led secondaries since 2007 completing over 35 deals for $1.7bn
  • Partner of choice for PE managers and investors thanks to strong reputation and experience as lead underwriter of transactions with mid-market managers
  • Expertise in acquiring difficult to value assets using proprietary pricing and structuring capabilities to underwrite challenging transactions across adjacent asset classes

ESG

At Glendower, we have incorporated the UN PRI ESG principles into all stages of the investment process as a tool to manage risk, drive returns and create new investment opportunities.

Our ESG philosophy brings the entire platform together, with the deal team and the investment committee taking ultimate responsibility for the ESG analysis and ongoing monitoring.

We are an active owner, and, where possible, seek opportunities to partner with the underlying managers to help drive improvements in our portfolio investments. In addition, we maintain and keep the dialogue with the broader industry to share best practice.