Content area
Full text
Hewitt Investment Group is advocating a fund-of-funds approach for private equity investors, even for large foundations and endowments.
Robert Van
Den Brink
Hewitt Investment Group is advocating a fund-of-funds approach for private equity investors, even for large foundations and endowments. "In private equity there has been a lot of research and you have to be a top quartile manager to generate returns above the public markets. Most of those funds are closed or only accept new investments from current investors," said Robert Van Den Brink, the investment consultant who leads Hewitt's foundation and endowment team out of its Cincinnati office. For newer, less-experienced investors, going into a fund-of-funds can be worth the extra layer of fees because of the extra layer of diversification, he continued. Depending on the nonprofit client, an investment in real estate, timber, hedge funds or other alternatives might be more suitable given the spending requirements of the fund.
Tailor-Made Solutions
"Even though the goals for our clients are the same at the...