FlowStone Partners has exceeded USD100 million of assets under management (AUM) in the FlowStone Opportunity Fund. The 1940 & 1933 Act registered investment vehicle was launched in August 2019 to provide qualified high-net-worth and smaller institutional investors with diversified exposure to private equity through an actively managed secondary-focused strategy.
For funds with this strategy and structure, the FlowStone Opportunity Fund is among the quickest to pass the USD100 million threshold.
FlowStone’s investment team has more than 65 years of combined private equity secondary and primary investment experience. The Fund is continuously offered, allowing investors to decide when to allocate, which provides a key difference from traditional private equity funds that close following fundraising goals. Other differentiators include lower investment minimums, limited liquidity available through the tender offer process, and Form 1099 investor tax reporting with early Q1 availability.
“We are encouraged by the confidence investors have shown in our team and the value that they see in FlowStone’s unique combination of investment strategy and fund structure. We’re hopeful that we’ll continue on our current growth trajectory,” says Scott Conners, Managing Director and President of FlowStone Partners. “Our growth after just six quarters allows FlowStone Opportunity Fund to compete for sources of capital not previously available to us. Our team remains focused on generating strong risk-adjusted returns and providing informative investor relations. Our senior leadership team has extensive experience successfully managing similar strategies, and we are now positioned to bring our institutional experience to the full breadth of underserved investors who have not previously had access to secondary-focused private equity.”
As of 31 December, 2020, the FlowStone Opportunity Fund has returned 23.2 per cent, annualised, since its 31 August, 2019, inception. The Fund returned 25.7 per cent in the One Year Ended 31 December, 2020, and 18.3 per cent in the Quarter Ended 31 December, 2020. According to recent SEC filings, the Fund is approximately 83 per cent committed/invested with exposure to 29 private equity managers and 187 companies across various industries.