New Research: ‘Platforms and Vehicles for Institutional Co-Investment’

Given the news out today about two new joint ventures bringing together three large sovereign and pension funds, I thought I’d share a new paper my AIMCo colleague Jagdeep Bachher and I recently finished on the creative ways institutional investors are collaborating and co-investing.

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Given the news out today about some two new joint ventures launched by three large sovereign and pension funds, I thought I’d share a new draft working paper that I’ve written with my AIMCo colleague Jagdeep Bachher (and Visiting Scholar at Stanford this year) on the creative ways that institutional investors are working together and co-investing with one another. Here’s a blurb:

A growing number of institutional investors, persistent in their desire to disintermediate and align interests with asset managers, are turning away from Wall Street and are instead looking to one another for assistance. These direct investors are hoping to overcome the loss of agglomeration economies embedded within traditional financial centers by leveraging a new set of network economies through collaboration and co-investment. The over-arching question, however, is how these funds can actively collaborate and co-invest to actually take advantage of these network effects. This can be quite challenging, as the differing return objectives and investment philosophies, not to mention the basic challenge of geography, all complicate matters. Drawing on a specific case study of collaboration and the qualitative data collected from over 20 on-site case studies of public pension funds and sovereign wealth funds around the world, this paper offers some practical insight as to how institutional investors can structure platforms and vehicles that will align interests and facilitate co-investment.”

Sounds pretty good, right? Well, we’d love to hear your feedback on it, so don’t hesitate to email me if you’ve got any critiques, comments or (dare I even hope) kudos. Again, download it here for free.

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