Linda Mack of Mack International moderated a panel on “The Lure (and Myth) of Co-Investment & Cooperation” at the 20th annual Campden Family Office and Investment Conference in Geneva, Switzerland on June 12, 2019.
CHICAGO (PRWEB) AUGUST 12, 2019
Linda Mack of Mack International served as moderator for a panel during Campden’s 20th annual Family Office and Investment Conference in Geneva, Switzerland, in June 2019. The session was entitled, “The Lure (and Myth) of Co-Investment & Cooperation.” She was joined by three panelists: Andrew Wynn, Director, Baywynn, UK; Josh Roach, Principal, Lloyd Capital Partners, USA; Mehmet Budak, Principal & CEO, Bessley Capital Inc., USA. The session charted notable increased interest for co-investing and the evolution of investment strategies for the Family Office. It featured discussion on who should be co-investing, the challenges involved, resources, governance and other essentials required to make a direct private co-investing strategy work.
The panel discussed one of the biggest myths about co-investing – the misconception that co-investing will save fees. “In fact,” said Linda, “to do it right is costly, but if done well, it can provide the family with access to very attractive deal flow, particularly in the co-invest partner’s domain expertise. It also provides the opportunity to be closer to the deal and decisions, and ultimately to higher returns. Creating a complimentary partnership that enables coinventing in one another respective areas of expertise can be mutually rewarding. But finding the right partner and establishing that relationship takes time.”
The panel emphasized the importance of due diligence when co-investing. “You can leverage due-diligence based on your co-investment partner’s experience/expertise, but it is always important to do your own due diligence.” Linda commented. “It is easy to get into a deal…not so easy to get out of one if it goes south. It’s serious business. There’s no magic wand.” Family Offices were encouraged to understand their budgets, the specific industries in which they want to co-invest, and the resource and infrastructure requirements necessary to be successful.
The panel also discussed the importance of the combination of trust and competency of a prospective partner. “A trustworthy partner is critical, but trust alone is not enough,” said Linda. “. Trust but verify that they have the experience, expertise and track record to be a good partner.” Governance with co-investment partners was also discussed as an important element for success. The panel also highlighted key elements important to include in operating agreements based on their experience.
The audience, comprised of family principals and family office executives, were very engaged in the discussion. Stories told by panelists included what makes a family “suitable” for being active in co-investing, key elements necessary to being successful, tales of unsuccessful co-investment partner experiences, and lessons learned. “The panelists had tremendous experiences to share,” said Linda. “They each were transparent about their “battle scars” and gave sound advice as to what they would do differently today knowing the pitfalls to success.”
About Mack International
Mack International is the premier, boutique retained executive search and strategic management/human capital consulting firm serving national and international clients in the family office, family business enterprise and the wealth and investment management industries on national and international basis. Founded in 2002, the firm has achieved an exceptional track record of success as evidenced by its unmatched industry expertise, in-depth market knowledge and unparalleled track record of success. Founder and President, Linda C. Mack has established proprietary methodologies such as the Mack 360© and is credited for having coined the term “expert generalist” in the industry.
Linda Mack of Mack International moderated a panel for the 20th annual Campden Family Office and Investment Conference in Geneva, Switzerland, June 12, 2019.
Source: HR.com Articles