In this video, DailyAlts publisher and editor Brian Haskin sits down with Michael Granoff, CEO and founder of Pomona Capital. Pomona operates eight private equity (“PE”) limited partnerships (“LPs”) that are distinct from direct investments in PE, in that the Pomona LPs take a “value” approach to private equity and spread smaller investments across many more companies than traditional PE funds. “A typical buyout fund may own interests in 15 companies,” Mr. Granoff explained. “Our current fund, which is only half-invested, already owns interests in over 100 funds and over 1,000 companies.”
Most of Pomona’s investments are “buy and hold,” but there exceptions to the rule. Moreover, PE investments “are not evergreen” – they have a set lifespan, which ends when the private company is sold or taken public. Pomona intends for its funds to be more liquid than direct PE investments, though, since Pomona typically buys its stakes from existing shareholders in private companies, thereby allowing Pomona to take a “value” approach and reducing the total holding period of the investments.
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