Assisted Search: Private Equity – PE140824Deadline: Friday 30th August 2024
CAMRADATA are running an Assisted Search for a UK endowment that would like to work with managers that have racial equity as a theme for allocation. The managers’ racial equity focus can be situated within the themes of housing, social mobility, health and climate / just transition. Beyond leveraging it as a theme for allocation, managers who have racial equity incorporated from the perspectives of stewardship, workforce and sustainability in their organisation may also be considered. Ultimately, the endowment’s vision is to catalyse equitable access to financial resources for Black and Minority Ethnic-led organizations & their communities to consequently enable enhanced social, economic, and cultural well-being. This search is specific to Private Equity fund managers. This asset class will comprise up to 10% of the total portfolio (£20m targeting a 4% average return). We seek private equity fund managers who align with the endowment’s racial equity goals while fitting into the specified portfolio allocation and return expectations. We’d like to prioritise UK-based managers with a global investment scope, a strong focus on racial equity, and a track record of investing in or supporting Black and Minority Ethnic-led businesses and communities, while also meeting the financial return requirements of the portfolio.
All funds being proposed must be listed in CAMRADATA Live and returns must be up to date i.e. to 31st March 2024.
Assisted searches are run on behalf of institutional investors with specific search requirements. These are as follows:
| Asset Class | Private Equity |
| Deadline | 30th August 2024 |
| Geographical Focus | – UK-based asset manager preferred – Global investment mandate acceptable |
| Target Return | – Target IRR: 20- – 25% net of fees – Target MOIC: 2.5x over the fund life |
| Currency | GBP (for reporting, though underlying investments may be in various currencies) |
| Fund Structure | Closed-end private equity fund |
| Size of Potential Mandate | Up to £3m (up to 15% of the £20m total portfolio) |
| Track Record | – Established managers: Minimum 2 years – Open to emerging managers with strong expertise in racial equity themes |
| Key Themes | – Racial equity as a primary investment focus – Sub-themes: housing, social mobility, health, climate/just transition |
| Investment Criteria | – Focus on Black and Minority Ethnic-led businesses – Investments in enterprises serving Black and Minority Ethnic communities – Commitment to ESG standards |
| Fund Manager Characteristics | – Preference for Black and Minority Ethnic-led management teams – Demonstrated incorporation of racial equity in firm’s practices (stewardship, workforce, sustainability) |
| Transparency Requirements | – Detailed fee structure (management fees, carried interest, etc.) – Regular reporting on social impact metrics – Clear communication on illiquidity and long-term commitment – Quarterly reporting on financial performance and TVPI |
| Team Profile | Detailed information on team diversity, expertise, and track record |
| Legal Structure | Limited Partnership or equivalent, suitable for UK endowment investment |
| Investment Stage | Variety of stages (e.g., growth equity, buyouts) aligned with racial equity themes |
| Commitment Period | – Typical private equity timeframe (10-12 years), with consideration for the endowment’s long-term objectives – 3-5 years |
| Due Diligence | Willingness to undergo thorough ESG and impact-focused due diligence |
| Co-investment Rights | Potential for direct co-investment opportunities in portfolio companies |
| Timeline | Prepared to make commitment within 6-12 months |
| Alignment with Overall Portfolio | Demonstration of how the fund fits within the broader 60% public/40% private split of the endowment |
| Minimum Commitment | Flexibility on minimum commitment to allow for appropriate allocation size |
Please submit relevant vehicle(s) to assistedsearches@camradata.com