In this video, the second in a series of three with Michael Granoff, CEO of Pomona Capital, Mr. Granoff further explains how his firm applies a “value” approach to private equity (“PE”) investing. Since Pomona buys its investments from other private sellers, it receives a price discount and a time discount on its investments. By practicing patience, Pomona is able to generate better returns and add a measure of safety to its investments, as well.
Mr. Granoff also explained that since PE funds and limited partnership interests don’t trade on market exchanges, his firm must spend time sourcing investments. “Sellers aren’t always advertising,” he explained, so Pomona’s team members stay in touch with PE contacts in anticipation of buying opportunities.
Click here for Part I or Part III of this video series. For a list of all the exclusive DailyAlts videos, click here.