Siguler Guff recognizes the need for all clients to maintain a reasonable degree of diversification within their private equity portfolios, and works with each particular client to customize their diversification goals. As a result, over time a portfolio managed by the firm will achieve its diversification goals, but will also display some bias towards the sectors the firm perceives as offering the strongest current opportunities, while still falling within the particular client's investment objectives.

In allocating among private equity sectors, Siguler Guff does not take an “indexed approach.” Instead, its investment process is driven at all times by a thoughtfully formulated point of view of the market, based on a strong conviction that market inefficiencies exist in different private equity market sectors at specific moments in time. For this reason, the firm’s tactical investment recommendations may run contrary to prevailing conventional thinking.