Finding Win-Wins in the Secondary Market
Optimize Capital Partners offers its investors accelerated exposure to diversified, high quality private equity portfolios. With its unique focus on secondary purchases of mature funds of funds, OCP has created an innovative solution that addresses two common problems facing institutional investors.
For institutions with mature private equity programs, legacy fund of funds investments can weigh on returns due to their high level of diversification and added layer of fees. Further, funds of funds are difficult to sell, as buyers tend to seek big discounts to achieve typical secondary market returns.
At the same time, for institutional investors developing private investment programs, it is very difficult to get to their target allocation. The usual pacing strategy of over-committing to funds takes years to implement and is imprecise and risky.
OCP buys late vintage funds of funds to enable investors to more quickly achieve their private equity target allocations. As diversified high-quality pools of assets, funds of funds are the perfect building blocks for private equity programs. With return targets commensurate with the lower risk nature of these investments, Optimize Capital Partners can offer sellers attractive prices. Both sides win.
FUNDS OF FUNDS FOR THE NEXT GENERATION
Building private equity programs through secondary investments in Funds of Funds
Optimize Capital Partners brings together a unique mix of skills, talent and
over 30 years of secondary market experience:
Robert McGrath is the founder and Managing Director of Optimize Capital Partners. Prior to founding OCP, Robert was an advisor to institutions on secondary investments in private equity and real estate funds at Setter Capital and PTM Capital. At Setter and PTM, Robert completed over $20 billion in successful secondary transactions including more than $1.5 billion in fund of funds commitments.
Robert holds a Bachelor of Arts degree from Queen's University, and a Master of Science degree in Accounting & Finance from the London School of Economics.
Freddie Zhang is an Associate Director on the investment team at Optimize Capital Partners and is responsible for the sourcing, valuation, and execution of private equity secondary transactions. Prior to OCP, Freddie managed the portfolio companies of a US based family office and worked in the private investment group of CPPIB.
Freddie holds a Honours Bachelor of Commerce from the Smith School of Business at Queen's University.
Victor Yun is a Senior Analyst on the investment team at Optimize Capital Partners and is responsible for the valuation of private equity secondary transactions. Prior to OCP, Victor was an investment banking analyst with Trimaven Capital Advisors and focused on alternative investments.
Victor holds an Honours Business Administration degree (with Distinction) from the Richard Ivey School of Business at Western University, and is a level two candidate in the CFA program.
ZAHEER WOODALLY, CFA, FCCA
Senior Investment Accountant
Zaheer Woodally is a Senior Investment Accountant at Optimize Capital Partners and is responsible for the monitoring and performance attribution of private equity secondary transactions. Zaheer has over twelve years of experience in the Fund Accounting industry. Prior to OCP, Zaheer was a Senior Investment Accountant with MUFG Fund Services Canada Limited, where he was responsible for the administration and accounting of a portfolio of funds encompassing private equity funds, hedge fund-of-funds, and single manager funds.
Zaheer is a CFA Charterholder and Fellow of the Association of Chartered Certified Accountants from United Kingdom.
KEITH MCLEAN, CFA
Keith McLean is a Managing Director at Optimize Capital Partners, and is a member of the investment team. Keith has over 20 years of investment analysis and portfolio management experience and has held roles of increasing responsibility with GMP Investment Management, Sphere Investment Management, and Investors Group Investment Management.
Keith holds a Bachelor of Arts degree from Western University, a Master of Business Administration degree from Dalhousie University, and is a CFA charterholder.
Calvin Marks is a Vice President on the investment team at Optimize Capital Partners and is responsible for the sourcing, valuation, and execution of private equity secondary transactions. Prior to OCP, Calvin handled corporate development at ION Investment Group, where he focused on corporate strategy, restructuring, and M&A for small & lower mid-market financial technology firms.
Calvin holds a Bachelor of Arts degree from the University of Toronto.
Max Weichel is an Analyst on the investment team at Optimize Capital Partners and is responsible for the valuation of private equity secondary transactions. Prior to OCP, Max was a private equity analyst with Rhyno Equity Group.
Max holds a Graduate Diploma in Business from the Smith School of Business at Queen's University, and is also Master of Finance candidate at the Smith School of Business.
Andrew Chen is an Investment Accountant at Optimize Capital Partners and is responsible for the monitoring and performance attribution of private equity secondary transactions. Prior to OCP, Andrew was a fund accountant with Citco (Canada) Inc.
Andrew holds an Honours Business Administration degree (with Distinction) from the Richard Ivey School of Business at Western University, and is a CPA candidate and level two candidate in the CFA program.
Dan Brintnell is a Managing Director at Optimize Capital Partners, and is responsible for managing investor relationships. Dan has over 25 years of experience in the wealth management and financial services sectors. Prior to OCP, Dan held senior management positions at Merrill Lynch, Cygnus Investment Partners, and DundeeWealth.
Dan holds an Honours Business Administration degree from the University of Waterloo.
Garrett Clyne is a Vice President on the investment team at Optimize Capital Partners and is responsible for the sourcing, valuation, and execution of private equity secondary transactions. Prior to OCP, Garrett was a Private Equity Associate at DW Healthcare Partners where he focused on buyouts and post-acquisition growth of mid-cap healthcare companies. Prior to DWHP, Garrett was an Investment Banking Analyst at TD Bank.
Garrett holds a Bachelor of Commerce degree from the Sauder School of Business at the University of British Columbia.
VERONICA DE LEON
Senior Financial Analyst
Veronica De Leon is a Senior Financial Analyst at Optimize Capital Partners and is responsible for the oversight and monitoring of client accounts. Prior to OCP, Veronica was a financial analyst at Cygnus Investment Partners, Liquid Capital, and SNC-Lavalin. Prior to becoming a Financial Analyst, Veronica was an Accountant at Bell Media.
Veronica holds a Bachelor of Commerce degree from Ryerson University, and is a CPA candidate.
Dave Dewan is a Business Analyst at Optimize Capital Partners and is responsible for information technology, infrastructure, and operations. Prior to OCP, Dave held business analyst roles at Cygnus Investment Partners, Arithmos Financial Innovations and NexGen Financial. Early in his career, Dave was a PGA Golf Professional.
Dave holds a Business Administration degree from Wilfrid Laurier University.
OCP targets two areas:
OCP targets lower-risk opportunities across its investors' core managers. These firms are best-in-class, tend to employ less leverage, and create value through operational improvements in their portfolio companies. Consequently, we can offer a premium to market for these funds.
Size: $10 – 200+ million NAV
Vintage: 2009 - 2017
OCP will provide its core manager short-list to agents and sellers upon request.
Funds of Funds
OCP pursues positions in funds of funds with the following characteristics:
Size: $10 - 200+ million NAV
Vintage: 2004 - 2012
Investment Style: preferred Generalist, LBO, selectively Distressed, Energy, Venture
Geography: preferred Global, US and Europe, selectively Emerging Markets
We have ready pricing for many of the managers' funds below:
With hundreds of underlying holdings, funds of funds can be very difficult for buyers to underwrite. We are fund of fund specialists, with ready pricing for over 50 funds of funds and can rapidly analyse new opportunities. We typically provide a formal offer within two weeks of being shown a new transaction.
LOWER COST OF CAPITAL
We have a lower cost of capital than most secondary buyers, and seek returns commensurate with risk. Secondaries of funds of funds may not offer “home-run” potential returns but they also tend to be much less risky than buying direct funds. We are willing to underwrite to below secondary market returns for high quality, diversified portfolios. We are not constrained by minimum IRR and MOIC targets.
If an institution is looking to free up capital from their fund of fund investments, we work collaboratively and transparently with them to find the optimal solution. We often find that we have similar views on particular assets as sellers, yet we differ on our return targets - therein lies the win-win. Beyond offering strong pricing for funds of funds, we are a creative and flexible counterparty and can tailor a transaction to suit a seller's non-price objectives.
We welcome enquiries from all parties with fund of funds opportunities. Agents and sellers can rely on OCP for quick pricing feedback. Managers of funds of funds can be assured that OCP is a long-term replacement partner.
161 Bay Street, 45th Floor
TD Canada Trust Tower
Toronto, ON M5J 2S1
+1 (888) 216-4410