“The most indepth research continues to affirm that, by nearly any measure, private equity outperforms public market equivalents.”
~ McKinsey Global*
Reach Alternative Investments provides access to the world’s most exclusive institutional-grade private equity and private capital funds run by the world’s leading asset managers. Generally, these funds have only been offered to institutional investors or the ultra-wealthy.
For the first time in Australia, we are providing access for sophisticated investor to such funds for as little as $75,000. We do so by aggregating sophisticated investor demand to meet the minimum investment threshold.
Why is access important?
“The most commonly accepted measure of private equity performance, public market equivalent …performance… finds that, of the 20 vintage years between 1996 and 2015, buyouts in only one vintage year (2008) have underperformed their respective public market equivalent return. This finding holds mostly true whether measured against the S&P 500 or the Russell 2000…” * McKinsey Global (please note, historical performance is no indication of future performance, specific risks may impact on the possibility of such a return in future).
By nearly any measure, private equity continues to outperform public market equivalents, even during one of the longest-ever bull markets in public equities.*
This performance has seen demand for private equity increase ten-fold since 2000, outpacing capitalisation in public equities by nearly threefold over the same period.*
To date, it has been large institutions and the ultra-wealthy that have benefited from the historical performance and diversification that such private equity funds have provided.
How do we provide access?
Reach Alts has managed to build strong relationships with the world's leading asset managers. We work closely with the fund manager, undertaking thorough due diligence, to select funds that meet our investment criteria to appear on platform. Our review includes:
- the proven expertise of the fund manager through their track record in the specific industry;
- the volatility of previous rounds or similar funds run by the fund manager;
- the repeatability, diversity and understandability of the funds; and
- the terms of the investment.
How does it work?
Our secure technology platform provides an end-to-end investment experience.
Across the year, we offer a number of funds from the world’s leading fund managers. Through our technology platform, with one login, our investors - or their financial advisers - can view the details of each fund we offer, engage with the fund managers, decide whether to invest in any one of our funds, sign all documents and receive tax reporting all through the same portal.
We undertake the due diligence on the funds to ensure they meet our criteria for listing on our platform. In addition, we facilitate community-led liquidity windows (on a best efforts basis). For select funds, after a lock-up period, such liquidity will be offered twice-yearly on a best efforts basis through dark pools. We keep our structure simple, creating a one-for-one relationship between the underlying fund and our unitised trust structure, this is to reassure our investors that they only have exposure to the funds they invest in, not any platform risk.
We face the fund manager of the underlying fund as a single institutional investor.
In addition, fund documentation and collateral is kept secure on platform, within our data rooms, and cannot be removed from our environment.
What do we charge?
We believe it is important to keep pricing simple, transparent and fair. Please consult the information memorandum for the particulars fees relating to any fund.
* McKinsey Global “A year of disruption in the private markets: Private Markets Review 2021” (April 2021), pages 20 - 21.
For more information about our available private equity funds, please visit our private equity funds page.