A trio of former Stanhope Capital execs have secured more than $600m for the launch of new investment house Eighteen48 Partners.
The firm says it aims to address the issues of over-diversification and market timing through its investment strategy, which it says have hampered returns for many investors.
Stanhope Capital co-founder Julien Sevaux sold his stake in the family office two years ago amid plans to launch a new investment firm.
He is joined at Eighteen48 by fellow ex-Stanhope execs Tarek AbuZayyad and Edward Clive.
John Singer, former managing partner of private equity firm Advent International, is representing strategic shareholders on the Eighteen48 board.
Sevaux said, “Eighteen48 was set up by investors for investors, to address the needs of sophisticated clients including leading investment professionals, entrepreneurs, wealthy families and institutions.
“Outside of their specific domain of expertise, our clients need a ‘home team’ to manage diversified portfolios and, in many cases, which can also source, due diligence and execute on direct private market investments. Most firms cannot do both.
Because we manage our own capital alongside that of our clients and co-invest with them in a transparent way, we have been able to build an exceptionally high degree of trust.
“We think of ourselves as an investment cooperative, of which we are all clients and to which we can each contribute.”
CIO Edward Clive added, “Leading endowments have outperformed conventional wealth management firms over the long term for a reason.
“Their focus on intellectual capital, access to private markets, and ability to take a genuinely long view all play their part.
“Above all it is the understanding that equity risk drives long term returns, and that the ability to compound those returns over decades comes not from market timing but from fundamental research, a relentless focus on investment selection, and disciplined rebalancing of portfolio assets as opportunities to do so arise.”
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