This video is the third installment of Brian Haskin’s interview with Michael Granoff, CEO of Pomona Capital. In it, Mr. Granoff explains how Pomona’s approach to private equity (“PE”) investing has four levels of diversification:
- Vintage-year diversification
- Company-level diversification
- Industry diversification
- Stage-of-development diversification
By contrast, direct PE investment lacks “vintage-year diversification,” because direct PE investments made in 2015 are all in 2015 startups. But since Pomona buys PE interests from existing shareholders typically five years after their launch, the firm is able to look back at previous “vintage years” to ensure this added level of diversification.
Click here for Part I or Part II of this video series. For a list of all the exclusive DailyAlts videos, click here.