Siguler Guff’s approach to private equity investing is guided by a short list of fundamental principles:
Invest With Superior Managers. Siguler Guff invests only with proven, high quality management teams, whether it’s a potential direct portfolio company or private equity fund manager. Identifying top quartile managers is critical to successfully investing; historically the “best get better.”
Disciplined Approach. Demonstrating the patience in identifying opportunities and a willingness to pass on opportunities that possess less than ideal investments characteristics are critical steps in our investment evaluation.
Price and Manage Risk. By nature, private equity carries inherent risk associated with a lack of liquidity, uncertain cash flows, imperfect information and inefficient pricing. However, Siguler Guff has developed a keen sense for evaluating and mitigating risk at the asset, fund and portfolio levels.
Actively Allocate Capital. Siguler Guff’s investment process is driven by a strong conviction that the level of market inefficiency (and hence the attractiveness of opportunities) for each private equity market sector varies over time. In any given market environment, there will be investment opportunities we find attractive and others we look to avoid. For this reason, our tactical investment recommendations at times may run contrary to prevailing conventional thinking.
Exploit Inefficiencies. The high absolute returns expected from private equity investing more often than not come from the exploitation of major market inefficiencies. In many instances, identifying these “moment in time” opportunities will offer truly compelling risk-adjusted returns. An integral part of our business model is to create effective and cost-efficient solutions to capture market inefficiencies when they arise.
Bring Direct Investment Experience to Bear. We have produced top-tier results from our direct investment activities. We believe this experience enhances our ability to identify, evaluate and manage our relationships with other fund management groups. It also differentiates Siguler Guff as a value-added investor while serving our advisory clients’ interests.