Over the last 20 years, the number of publicly traded companies in the U.S. has decreased by approximately 50%. The market has become highly concentrated, leaving investors access to the same, limited pool of investments. For this reason, many investors are turning to private markets in order to increase the diversification of their portfolios. If constructed properly, having exposure to private equity may enhance a portfolio’s return while reducing volatility.
As our analysts look for local private equity opportunities for Arnerich Massena clients, they became aware of a non-profit organization in Portland called Starve Ups. Founded in 2000, Starve Ups is “the only end-to-end full lifecycle accelerator, taking founders and their startups from launch to exit.” Their philosophy is centered on founders sharing their knowledge and expertise firsthand with other founders. Since inception, their peer-to-peer mentoring approach has raised over $540 million in capital, has experienced 26 exits, and boasts a shareholder value over $1 billion.
The success of this non-profit sparked founder John Friess and board member Chris Carlson to launch the Starve Ups Syndicate Fund, a private equity fund. The fund will invest in Starve Ups member companies from 2017, 2018, and 2019, giving limited partners exposure to a group of more than 60 companies in total. The fund also provides its investors exclusive access to follow-on investment opportunities in the most successful companies.
Although the Starve Ups Syndicate Fund is not an Arnerich Massena Approved Manager, it is an intriguing local private equity opportunity. Contact an Arnerich Massena advisor if you would like further details.