A former UTIMCO crew launches a non-public markets firm
A crew of senior traders broke away from the College of Texas Endowment Supervisor to create a non-public markets agency centered on supporting new and growing managers.
Founding companions William Prather III and Richard Rincon, who just lately labored collectively on the College of Texas / Texas A&M Funding Administration Co., closed an acquisition on Monday to assist launch their new funding agency, Cypress Creek Companions. Prather is the previous head of pure assets and infrastructure at UTIMCO, whereas Rincon was beforehand senior director of personal fairness.
“We have had nice experiences at UTIMCO – it is an awesome platform,” Prather stated in an interview with Institutional investor. “However there was a transparent market alternative and all of us needed to make the most of it. You get a snap or two like this in a lifetime, and I do not assume any of us need to watch it go by. “
With Cypress Creek, Prather and Rincon search to construct on their experiences at UTIMCO, the place they’ve deployed greater than $ 5 billion in non-public market funds and co-investments. With the backing of what Prather has described as a “large model household workplace” in the USA, the brand new firm begins with the acquisition of Endowment Advisers, a fund supervisor of funds with greater than $ 500 million in enterprise. non-public belongings in automobiles of everlasting mounted belongings.
“The corporate was aligned with what we need to construct; it was aligned with our experience; and it was aligned with what we see because the megatrends out there that we need to capitalize on, ”Prather stated of the acquisition.
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Based on Rincon, Cypress Creek’s technique is “a continuation of the playbook [they] efficiently refined ”at UTIMCO. The crew goals to make investments anchored in new and growing managers – outlined as those that have raised as much as 4 funds – specializing in buyouts, progress shares, infrastructure and pure assets. Cypress Creek can even conduct co-investments and direct investments, with a main deal with the USA
“The primary pillar is to help the subsequent era of funding groups,” stated Rincon. “It isn’t nearly offering capital; it is actually about being a holistic, long-term companion for these groups to assist them take into consideration the best way to construct their franchises by way of cycles. “
By betting on much less established managers, Rincon and Prather consider they’ll outperform in asset lessons which have attracted document quantities of capital. They cited, for instance, a February 2019 examine by Cambridge Associates, who discovered that new and developed managers averaged over 75% of the highest ten non-public fairness managers between 2004 and 2015.
Now that they’ve accomplished the acquisition of the Endowment Advisers funds, the founding companions of Cypress Creek search to proceed to evolve their technique and strengthen their crew. Together with Rincon and Prather, the present crew additionally consists of former UTIMCO Director of Operational Due Diligence, Benjamin Murray, who joined the group as COO of Cypress Creek.
They plan to broaden the crew to round 6-8 folks, together with a number of junior positions for which Cypress Creek is actively recruiting.
“We’re delighted to have taken this step and now deal with constructing a robust crew and executing the Cypress Creek technique,” stated Rincon.