A recent AngelList announcement highlights a revolution in the financial markets giving Limited Partners "direct" access to promising early-stage companies at lower fees via Crowdfunding. AngelList's new $25 million fund ("Maiden Lane"), is funded directly by Limited Partners Cendana Capital, Markena Capital Management, Venture Investments Associates.
"The arrangement gives prominent individual investors more leverage to write bigger checks for promising early-stage companies, while also ensuring Limited Partners get more direct access with fewer fees."
Direct Investing has emerged as a significant force in "Best Practice" capital allocation and alternative investment strategies. In 2012, a landmark study by the Kauffman Foundation evaluated the performance of 100 venture capital and private equity funds since 1985. While reinforcing the importance of alternative investments to pension funds, endowments and family offices, the conclusions of the Study reveal that:
“The cumulative effect of fees and carry do not enable us to achieve returns sufficient to reward us for patient, expensive, long-term investing.”
— Ewing Marion Kauffman Foundation, May 2012
$27.2 billion of alternative investment capital was deployed in the global healthcare industry during 2013. According to the Winter 2014 Global Private Equity Barometer, published by Coller Capital:
“54% of LP’s have co-invested with their GP’s during the past 2 years, while the ‘typical’ (median) LP currently invests 10% of its total PE commitments directly into private companies. These commitments are expected to increase by 50% by 2017.”
As Direct Investing commands an increasing proportion of private equity disbursements, HealthiosXchange, a CrowdFinance portal dedicated to the healthcare industry, seeks to be the premier resource for LP's in implementing a range of alternative investment strategies throughout the global healthcare industry.
To learn more about Direct Investing and HealthiosXchange please click http://www.healthiosxchange.com/pages/who-we-are
To become a HealthiosXchange member click http://www.healthiosxchange.com/signup?ref=3