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KNIGHTSBRIDGE SOLUTIONS


 

Practice Selectivity

Knightsbridge has a concentrated and balanced portfolio tightly focused on the hardest to access, typically invitation-only, venture funds. Knightsbridge consistently practices fund-size discipline, raising only the amount of capital that can be expected to be invested in partnerships of the top venture capitalists. The Knightsbridge team also has the network and skill set to find and evaluate those up-and-coming venture franchises that have the greatest potential to become part of the established top quartile.
 

Gain Value and Liquidity from Venture Secondaries

Knightsbridge takes advantage of its standing in the venture industry to source and invest in secondaries which have the added benefit of shortening or eliminating the venture J-curve through the accelerated appreciation and liquidity derived from more mature assets. The secondary fund interests targeted will typically be acquired at a significant discount to appraised value. Knightsbridge sources its secondary investments through its industry network, including GPs, LPs, intermediaries, and other secondary funds.

Provide Vintage Year Diversification

Knightsbridge funds typically invest over multiple vintages (typically three to four years). By investing over multiple years, Knightsbridge is able to gain exposure to a broader set of companies and mitigate exposure to lower-performing years. In addition, Knightsbridge believes that successfully attempting to time commitments in a venture investment program is very difficult, given the length of the venture investment cycle.

 

Reduce the Burdens of Starting and Maintaining an Impactful Venture Program

Knightsbridge acts as an extension of its limited partners’ investment teams, allowing them to avoid the added expertise, travel, due diligence, and networking required to build and maintain a venture capital program. Knightsbridge also offers custom separately managed accounts to suit individual limited partner investment program needs. The Knightsbridge back office team is also able to adjust reporting to suit individual limited partner requirements.

 
 
 
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Knightsbridge Investments


 

Venture Capital Partnerships

The Knightsbridge venture program is distinguished by its focus on venture partnerships that invest in technology and life science-based companies at the seed and early stages of a private company’s life. Compared to other segments of private equity, venture is a relatively small asset class, so the best managers tend to be highly access restricted.

The venture industry is also differentiated from most other investment sectors in that manager performance is characterized by persistence, i.e., top performing venture managers have a high probability of future out performance [1]. As such, skilled manager selection and concentrated access to the best venture capitalists are critical elements to a successful venture program. Knightsbridge has successfully identified (and continues to identify) leading managers and has built (builds) relationships with firms that, today or in the future, we believe represent the established top performing venture franchises.

Knightsbridge has also invested selectively in non-early stage venture partnerships for more than three decades. These opportunities typically have attractive investment returns comparable to early stage venture capital funds.

Growth equity funds targeted by Knightsbridge will typically invest higher amounts in companies with lower downside risk and shorter holding periods. Additionally, growth equity financing's often have downside protections such as convertible and participating preferred securities.

[1] Based on research by Steve Kaplan and Antoinette Schoar, Private Equity Performance: Returns, Persistence, and Capital Flows.

Venture Capital Secondaries

Knightsbridge seeks to opportunistically invest in venture capital fund secondaries where it anticipates an attractive return. Attractively priced secondary transactions can have an immediate positive impact on a fund’s net asset value. In addition, secondary assets in older funds are likely closer to realization events than primary fund investments, therefore providing some early liquidity.

Knightsbridge sources its secondary investments through its industry network, including GPs, LPs, intermediaries, and other secondary funds.