TIGER 21 INVESTORS PUSH FOR MORE PRIVATE EQUITY

Tiger 21 Investors Push for More Private EquityBy Kathleen Laverty July 24, 2014Members of ultra-high-net-worth peer group Tiger 21, which represent more than $25 billion in assets, have boosted their private equity allocations by 10% in Q2. Private equity as a whole now makes up about a quarter of their overall investments.For the network’s 265 members, private equity has jumped to 22% from 20% of overall assets in the last quarter, Tiger 21 says, notching the most significant allocation increase since Tiger 21 began tracking members’ portfolio plays in 2007.The recent upswing represents a long-term trend that has seen Tiger 21 members increase their private equity exposure from 9% in early 2008 to more than 19% since the fourth quarter of 2012. More recently, the group’s members have maintained private equity holdings near the mid-20% region.Members have shown a particular interest in direct investments “where they can create long-term value in companies,” says Thane Stenner, managing director and founding member of Tiger 21 Canada.Group members have also kept “a considerable presence in public equities,” says Stenner, despite their public equity exposure dipping by one percentage point over the last quarter to 23%.Public equity allocations have slipped below 20% in just three quarters since Tiger 21 issued its first-ever asset allocation report.Meanwhile, with an average allocation of 22%, real estate, too, is “favored by members as an investment that they can exert some control over and hold long term,” says Stenner.Tiger 21 members are also holding slightly more assets in cash and cash equivalents, with the category rising one percentage point in the second quarter to reach 11%. Average yearly allocations to cash and equivalents have come in between 10% and 11% for the last five quarters, the group says.