- Generate superior returns through a diversified portfolio of venture capital and growth equity investments
- Concentrated capital allocations with difficult-to-access top-tier managers
- Target emerging managers selectively
- Focus on early stage investments and growth capital in technology and healthcare
- Diversified across industry, stage, and vintage year
The Fund of Funds Approach
Accolade seeks to replicate on behalf of its investors what has been historically available only to top-performing endowments and other institutional investors by virtue of their size and ability to identify, analyze and select venture capital and growth equity managers. In the current environment, where demand for top performing funds greatly exceeds supply, Accolade believes it would be almost impossible to access managers contemplated for inclusion in Accolade's portfolio. The inherently inefficient nature of this asset class requires dedicated investment professionals with deep domain expertise capable of performing those functions. In addition, the level of diversification in a fund of funds is difficult to achieve without a large amount of investment capital. Accolade is experienced in building a portfolio that is diversified across managers, areas of investment focus, stage of development and geography. Moreover, Accolade believes deploying capital over time serves to mitigate the risks associated with investment concentrations by deal or investment cycle.
Points of Differentiation
Accolade believes that there are only a small number of private equity managers capable of delivering industry-leading returns with consistency. Access to these highly sought-after managers is at a premium. In the current environment, institutional investors continue to allocate funds to this asset class, at the same time as top performing funds are cutting their fund sizes to manage capital more efficiently. This has created a situation where demand for top performing funds greatly exceeds supply. Accolade believes it would be almost impossible to access managers contemplated for inclusion in Accolade's portfolio. As such, Accolade provides its investors with an opportunity to invest in these top tier funds with which it enjoys long-standing relationships.
Accolade's focus is on selectivity and performance, rather than asset gathering, in order to seek to achieve above-average returns. Accolade is not seeking to assemble assets to create the equivalent of a private equity index. Its discerning approach and reasonable fund size allows it to secure meaningful allocations to top tier funds, thereby increasing the likelihood of superior returns for its investors.
Accolade has built strong relationships with principals in venture capital and private equity as well as institutional investors. In its opinion, Accolade has positioned itself as a strategically significant player in the community. Both institutional investors and general partners consult, formally and informally, with Accolade on a regular basis for advice and guidance. These collegial relationships enhance Accolade's stature in the industry improving its ability to secure meaningful allocations in top funds.
Accolade conducts exhaustive due diligence on all potential investment opportunities. Accolade devotes substantial effort to researching new managers. The firm often initiates dialogue and informal due diligence with prospective managers years ahead of committing capital. As a general rule, target managers must have a successful track record and a proven investment strategy. Accolade believes that its deep domain expertise, particularly in the areas of information technology and healthcare, enables it to make sound asset allocation decisions. In its opinion, Accolade possesses a fundamental understanding of growth companies, which assists it in scrutinizing managers and investment strategies objectively and effectively.