The Oxford Way

When it comes to building a diversified investment portfolio it’s often the obvious choices that come to mind—stocks, bonds and perhaps real estate. However, there’s a wealth-generating asset class that’s not always in the spotlight but deserves a closer look: private equity.

Private equity has a unique proposition in the investment landscape. It’s all about enhancing your portfolio’s long-term return potential. If you have a long investment horizon and ample wealth to invest, private equity can be a game changer. But what’s the trade-off? You must be prepared for illiquidity, as some of your capital may be tied up for a decade or more.

That said, the allure of private equity lies in its potential to deliver substantial returns, often exceeding those of public equities by a significant margin. It’s not unheard of for private equity to consistently provide returns of at least twelve percent per year compared to the eight percent you might expect from public equities.

Oxford’s scale—supervising over $30 billion in assets under advisement*—provides access to exclusive opportunities and favorable pricing. In the world of private equity, where relationships matter, Oxford’s reputation as a trusted partner opens doors to unique opportunities that others might find closed.

Moreover, Oxford’s negotiation prowess benefits clients. Oxford strives to reduce management fees and carried interest, ensuring that cost savings directly translate into better returns for investors.

When it comes to investing in private equity, Oxford employs several strategies:

1. DIRECT PRIVATE EQUITY: Oxford takes control of the company, actively participating in its board to oversee management and growth.
2. MINORITY INVESTMENTS: Oxford becomes a minority investor in a company, sharing ownership with others while participating in the company’s growth.
3. CO-INVESTING: Oxford collaborates with a private equity general partner, contributing capital to seize opportunities while reducing or eliminating management and performance fees.
4. GENERAL PARTNER FUNDS: Oxford focuses on smaller, sector-specific private equity funds managed by industry experts, rather than mega-funds that handle billions of dollars.

In a diversified portfolio, private equity occupies a unique space. It’s a step beyond conventional asset classes, offering higher return potential for accepting longer lockup periods. Clients often participate in private equity as an aspirational investment. The returns from investing in Aspirational Solutions are not for immediate needs but instead prioritize long-term growth for goals such as family and charitable gifting over time. For entrepreneurs who’ve experienced private equity transactions firsthand, investing in this asset class can further increase the wealth enhancement they may have experienced from this category personally.

In a world where diversification is key to managing risk and achieving results, private equity is a powerful tool. With Oxford’s guidance and expertise, you can tap into the potential of private equity to bolster your investment portfolio, unlocking new opportunities for long-term  wealth creation.

*As of 12.31.2022