Direct Investing: It’s Complicated

So many LPs have “Canada envy” in coveting direct investment capabilities, but very few will have the financial or governance wherewithal to make this happen, according to Drew Guff, Managing Director of Siguler Guff and head of the firm’s direct investment business. In a fascinating conversation with Privcap’s David Snow, Guff describes by LP direct investment is “fraught with risk.” Also discussed: How Siguler Guff has structured its own direct investment business, in what circumstances GPs welcome co-investment capital, and the compensation structures for running a direct investment platform.