Monitoring of PE/VC investments refers to the process of evaluating the traction of PE/VC firms (“GPs”) between fundraising. This is important since many institutional investors (“LPs”) consider the five most recent years of GP activity as a key indicator for the future success of a GP. The goal of monitoring is to establish whether to re-up (reinvest) with a certain GP or commit money to a different GP. Read the rest of this entry »
Bison is uniquely positioned to identify trends in private equity. We track regulatory filings and news about every PE/VC firm that fundraises in the U.S. Our proprietary technology augments these data points into dynamic firm profiles. Having just released our public beta in June 2013, we already serve more than 200 LP firms that follow over 700 GPs across different geographies, styles, and focuses on Bison.
Here are the top ten trending GPs on Bison for Q2 2013: Read the rest of this entry »
The General Solicitation ban for private equity (and other private securities) is no more thanks to the SEC. There has been a lot of talk today about what this means for private equity and we at Bison.co wanted to share our view.
1. Issuers do not need to (and very likely will not) solicit funds. Dan Primack notes an opportunity to get money from accredited investors into funds, but cautions that most top-performing managers will not solicit publicly to avoid scrutiny. There is another dimension to this… Read the rest of this entry »
Rasmus: Hi Mike, in our last conversation we spoke about institutional investors (LPs) who invests in private equity. I’d like to hear a bit more about what these LPs invest into when they invest in Private Equity?
Mike: Hi Rasmus. Well as an LP, you are one of many partners that invest in a limited partnership. To qualify as a limited partner of the partnership, you can have only a minimal influence over the partnership. It’s almost like being a silent partner. You put the capital in, but you don’t guide the actual investment decisions. Read the rest of this entry »
Rasmus: Hello again, Mike. Let’s dive right into our next topic. Did you know that more than 90% of the capital going into private equity comes from institutional investors (LPs)?
Mike: Hi Rasmus, yeah that sounds about right. Institutional investors are focused on investing large amounts of capital with an extended time-horizon, so the asset class makes a lot of sense for them. One interesting point here – there is a major misconception in the general public that private equity and venture capital managers are investing their own money, and that they are getting rich off the efforts of others. That is true only to a very limited extent. Most of the money comes from these institutional investors.
Rasmus: How would you break down the various institutional investor groups? Read the rest of this entry »
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