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GAM LSA Private Shares AU Fund

GAM LSA Private Shares AU Fund is a late-stage venture capital (VC) strategy, managed by established US private markets group, Liberty Street Advisors. The fund provides access to a diversified portfolio of leading privately-owned companies that are in the final non-public funding rounds. With a focus on late stage high-growth innovation companies, the fund aims to back already-successful companies with established market share, strong management boards and proven products. Investors aim to participate in the potential appreciation of these dynamic private companies whilst they are under private ownership.

Our Edge

Deep industry experience

The fund is managed by a seasoned team with multi-decade investing experience and deep relationships with those in key areas of deal flow - entrepreneurs, venture capital experts, private equity firms and professionals in technology industry networks.

Attractive structure

An Evergreen structure enables strong investor alignment with immediate deployment of funds across a diversified portfolio, thus avoiding negative ‘J-curve’ impacts. In a traditional PE fund, capital is invested into a more concentrated portfolio over a 3-4 year investment time period and typically requires allocations to new ‘vintages’.

Liquidity profile

The fund’s daily application and quarterly redemption program allows for up to 5% of the fund to be redeemed each quarter, giving it a more liquid profile than investing directly or through traditional VC funds.

Longstanding, proven process

The team utilises a proprietary, multi-factor ranking process that incorporates criteria such as revenue growth, market potential and investor quality, to establish a portfolio of some of the world’s most innovative and compelling private companies.

Investment Team

The fund is managed by Liberty Street Advisors, an established US manager with experience of running a similar strategy since 2014.
 
Kevin Moss, Managing Director, Christian Munafo, Chief Investment Officer and Jonas Grankvist, Director are responsible for investment management, risk oversight and operational control of the fund. All portfolio investment decisions require their unanimous approval.
 
The investment management team works closely with a group of analysts. Transparency is encouraged at all levels, and the team is bound together by a highly collaborative, tight-knit culture, with interaction and knowledge sharing across team members.

“Pre-IPO companies are a really important and dynamic part of the market to which we believe as wide a range of investors as possible should have exposure.”

Kevin Moss
President & Portfolio Manager, Liberty Street Advisors, Inc
Christian Munafo
Chief Investment Officer, Liberty Street Advisors, Inc
Jonas Grankvist
Managing Director, Liberty Street Advisors, Inc.

Philosophy and Process

Investment Philosophy and Approach

The team believes that late-stage, private growth companies can present an attractive balance of risk and return for investors, compared to early-stage venture investments and public equities. The team seeks to exploit this opportunity using a rigorous investment process, focused on intensive due diligence of companies and stringent investments criteria. Their long-term track record in the industry enables them to make both primary and secondary investments into private companies and offer risk-adjusted returns for clients.

Investment Process

The team’s investment process focuses on the stringent due diligence of VC-backed companies, firstly monitoring an extensive universe of private technology and innovation companies across multiple sectors. Their use of proprietary databases and extensive network of relationships across the VC ecosystem enable them to identify high-performing companies, using direct and indirect origination channels to identify investment opportunities.  Their in-depth due diligence focuses on qualitative and quantitative data, confidential public and private information and meetings with management, key investors and domain experts. After unanimous Investment Committee (IC) approval, investments are made to build a diversified portfolio of companies that are actively monitored and expected to generate capital appreciation through exits such as IPOs, M&A activity, secondary sales and direct listings.

Reasons to Invest

Private Market Access

Investors can gain access to a portfolio of unique, privately-owned companies that were historically reserved for institutions and endowments. The fund is a direct access point to the private market for all types of investors.

Sharp increase in 'Unicorns'

Growth equity companies are benefiting from an innovation ‘super cycle’ with disruptive technology-driven growth across all sectors and industries. This growth has led to a proliferation of ‘unicorns’, with over 800 venture capital backed companies currently valued at over USD 1 billion. 

Expanding Market

Companies are staying private for longer, driven primarily by regulatory changes, ease of business model development in the private sphere and a surge of private capital. A significant portion of these companies’ value appreciation occurs prior to entry into the public markets, at mid or large-cap size. Many of the world’s most innovative private companies may never be available for public market investment.

Portfolio Diversifier

Strong long-term performance expectations, with historical downside resilience and low correlation to public equities, make the asset class attractive for portfolio diversification. From an asset allocation perspective, investors are increasingly turning to alternatives to fill the void that traditional assets once provided for return enhancement, risk minimisation or diversification.

Key Risks

Market risk

The performance of the fund depends to a large extent on the correct assessment of privately-owned companies. There can be no assurance that the fund’s investment manager will be able to correctly predict such prices.

Capital at risk

All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.

Currency risk

Non-base currency share classes may or may not be hedged to the base currency of the fund. Changes in exchange rates will have an impact on the value of shares in the fund which are not denominated in the base currency. Where hedging strategies are employed, they may not be fully effective.

Liquidity risk

Shares in the fund are highly illiquid and due to the illiquid nature of the fund’s investments, you may not be able to redeem your investment when, or in the amount that, you desire.

Portfolio Holdings

Outlook 2024
Outlook 2024: Christian Munafo (Private Shares)
December 2023

Private Shares – An opportunity to participate in the accelerating growth of companies staying private for longer

Investment Opinions
Capturing value in late-stage venture capital investment
14 September 2023

With the mixed macroeconomic backdrop seeing more private companies delay plans to go public, liberty street advisors’ christian munafo discusses the specific appeal of late-stage companies over their early-stage peers. Christian also explains why the tougher exit environment can present new opportunities for investors.

Investment Opinions
Finding opportunities in private markets
15 June 2023

Over the last two decades, the number of companies listed on public markets has roughly halved. Liberty Street Advisors’ Christian Munafo examines why companies today are staying private for longer and outlines the opportunity this presents for investors.

OuR Thinking

Investment Opinions
Banking the profits - European banks Q4 earnings demonstrate the sector's strength
27 February 2024

Impressive results from Europe’s banks continue to reflect years of balance sheet strengthening, regulatory changes and the end of the era of rock-bottom interest rates.

Active Thinking
Active Thinking: Applying Swiss precision to a global investment opportunity set
23 February 2024

Swiss companies’ reach is probably more global than you realise. Daniel Häuselmann discusses how a combination of Switzerland’s stability and mindset of excellence through innovation have helped Swiss companies to become leaders on the world stage.

Charles Hepworth Blog
Fed wary of cutting US rates too quickly
22 February 2024

FOMC meeting minutes suggest cautious approach to cuts until inflation battle is won.

Fund Information

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Disclaimer: Past performance is not an indicator of future performance and current or future trends. The indications could be based on figures denominated in a currency that may be different from the currency of your residence country and therefore the return may increase or decrease as a result of currency fluctuations. Capital at risk: all financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed. Any reference to a security is not a recommendation to buy or sell that security.