How have you been a change agent at
your organization? What have you done
that you’re particularly proud of?
I am most proud of how our team has been
able to transform a traditional private equity
program (focused on funds and fund-of-funds)
into a high-performing, forward-thinking
program consisting of alpha-generating
fund managers, large opportunistic separate
accounts, high-growth co-investments, and
direct investments. Across asset classes, we
are encouraged to think creatively. This has
driven us to build a program that leverages
external resources and technology to opportunistically invest in private equity.
What is the asset class or investment
that keeps you up at night, and why?
I can’t think of one that doesn’t worry me!
The accelerated flow of capital into private
markets, all-time high public equity valuations and near zero interest rates make it
difficult to see how high returns are going to
continue to be generated.
What methodologies have you adopted
within your institution?
We have continued to raise the bar for our
investments as the markets have gotten
more competitive and expensive. Today, we
will only lock up capital into private equity
investments if the manager has proven they
can create value in excess of what we could
have replicated in the public markets. We
have become highly focused on investing
with managers who we believe can generate
alpha regardless of the economic environ-
ment and on investments where we believe
the downside is limited.
Where do you fall in the passive vs.
Passive seems to be winning the debate currently. However, there are highly skilled
active managers who have consistently created value and are deserving of an allocation.
What are the changes you’d like to see
the institutional investing community
make in 10 years?
More communication and information
sharing amongst institutional investors. We
all face similar challenges, yet don’t come
together often enough to share ideas on
trends, investments, or managers.
Who is a manager you don’t currently
work with whose brain you’d like to pick?
Investors who are patient, don’t get caught
up in the “flavor of the day,” believe business fundamentals drive returns, and have a
contrarian approach to investing are particularly interesting to me. Warren Buffett, Jeremy Grantham, and Howard Marks would
be an amazing roundtable.
Ideally, where would that meeting take
In a London pub.
What software investment tool that
helps you most?
J. Brady Hyde
Portfolio Manager—Private Equity, UPS Group Trust
Instrumental in developing the co-investment program
where he has completed several co-investments with
high-quality general partners and has been actively
involved with the private markets team.
We leverage a handful of great web-based
products for diligence and monitoring.
What would improve the relationship
between you and managers?
More transparency and being more proactive on investor communications. Good or
bad, it’s always better to let us know what is
Why did you choose your current path?
I am fascinated by the constant variety of
companies and investment strategies I come
across. The opportunity to constantly learn
from and talk to high-caliber individuals
makes this job exciting.