Alternative Investments
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In recent years, sophisticated investors with long-term horizons have grown increasingly interested in alternative investments. Typical examples of alternative investments include private equity partnerships, hedge funds, natural resources and real estate. Historically, alternative investments have generated attractive risk-adjusted returns, while providing significant portfolio diversification benefits.
Access to alternative investments is often achieved through limited partnerships. High minimum capital commitments—often $1.0 million or more—are a common characteristic of these partnerships. Additionally, investors must meet certain net worth or income criteria before qualifying for such an investment. Importantly, limited partnerships can accept no more than 499 individual investors and in some cases the limit is 99. Therefore, opportunities to invest with the “best” alternative investment managers are infrequent.
We view alternative assets as a means to reduce dependence on traditional marketable securities, thereby truly obtaining characteristics of a well diversified portfolio. We have developed two unique programs to provide our clients access to these opportunities.
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Savile Row
Alternative investments in private equity have traditionally been the exclusive province of institutional investors. Private equity funds typically demand limited partners who can commit millions.
Oxford’s Savile Row program provides qualified individual investors access to the top private equity opportunities in the market. We form pooled funds for the purpose of aggregating client assets to dramatically reduce the outlay required of each participant. These pooled funds are set up as limited liability companies, or LLCs.
Savile Row investments typically commit between $10 and $30 million of capital from our clients. Current investments include real estate, oil and gas, timber and distressed equity, among others.
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Mayfair
In addition to pooled funds that are set-up as limited liability companies, Oxford also provides its clients with opportunities to make direct equity investments in privately held companies through our Mayfair Management Buyout Strategy. Mayfair private equity transactions allow our clients to invest equity with successful, experienced and established management teams of the target company.
Oxford’s Mayfair investment philosophy is based on complete professional and personal respect for the companies in which we invest. The companies we partner with market leaders of quality products and services that have high ethical standards, strong management teams and excellent future growth potential. The key to our approach is our desire to “partner” with a company’s management team, and not “take over.”
For more information regarding Oxford’s Alternative Investment opportunities, please contact
Michael A. Rosen, Managing Director of Private Equity.