TeamCo Advisers Releases White Paper on Special Situations Funds

SAN FRANCISCO--(BUSINESS WIRE)-- TeamCo Advisers, LLC (“TeamCo”), a privately owned investment advisory firm that manages portfolios of select hedge funds and other opportunistic alternative assets, today provided an in-depth overview and analysis of Special Situations Funds (SSFs), also known as co-investment vehicles, outlining the factors investors should consider when evaluating these funds for inclusion in their portfolios. The paper, entitled, “Special Situations Funds: A Private Party Worth Crashing,” was co-authored by TeamCo Managing Directors Kurt L. Braitberg, CFA, CAIA and Aimee F. Kish, CAIA.

In the report, TeamCo notes that:

• SSFs enable hedge fund managers to capitalize on illiquid, potentially high performing investment opportunities, and investors and allocators are increasingly viewing these funds as an attractive way to diversify, balance, and/or fortify their portfolios.
• Investors find SSFs compelling for a number of reasons, including their ability to often deliver returns uncorrelated to broader liquid markets and offer more favorable pricing structures relative to typical private market funds. Notably, SSFs typically have significant participation from the hedge fund’s general partners, an indication of the manager’s confidence in the investment opportunity.
• SSFs are idiosyncratic in nature, and their characteristics – investment horizons, fee schedules, and liquidity profiles – are derived from both private equity and hedge funds. While these hybrid traits can help stabilize an investment program, they can also pose challenges when trying to place the fund in a specific asset class. Additionally, the process for evaluating SSFs can be burdensome for investors due to time constraints and other factors.
• As SSFs become more prevalent, investors need to carefully evaluate these funds and the people running them, and weigh the benefits within the context of their portfolios, including determining the motivations behind the creation of the fund.

Kurt Braitberg said, “Special Situations Funds can present attractive rewards for investors, particularly in low return environments. As these funds become available to a wider investor base, investors must have a full understanding of SSFs’ benefits and challenges so that they can select the right fund – led by the right manager – to meet their overall investment objectives. Not only is it crucial that investors evaluate the individual(s) managing the fund to ensure that they have the qualities and skills necessary to succeed, but they must also consider the degree to which their interests are aligned with those managing the fund.”

The white paper is available on TeamCo’s website, at http://www.teamcoadvisers.com/pdfs/Special-Situations-Funds-A-Private-Party-Worth-Crashing.pdf.

About TeamCo Advisers, LLC

TeamCo Advisers is a privately owned investment advisory firm that manages portfolios of select hedge funds and other opportunistic alternative assets exclusively for tax-exempt, institutional investors. Utilizing a rigorous, structured Decision Science-based investing process, TeamCo focuses on investing in hedge funds that are owned and operated by what they conclude are exceptional investors, leaders, and managers of business. The firm invests in hedge fund managers that have long/strong track records through a variety of market cycles, a robust back office infrastructure, and a capital base composed of sophisticated long-term investors. Founded in 2002, the firm has $1.7 billion assets under management.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150916005795/en/

Sard Verbinnen & Co
Dan Gagnier / Elizabeth Smith
212-687-8080

Source: TeamCo Advisers, LLC

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