Argent Private Equity & Real Estate

By Argent Wealth Management, LLC on November 2, 2023

Introduction

• Argent clients have direct access to PE and PRE limited partnerships.
• Private Equity (PE) and Private Real Estate (PRE) may help improve returns and lower risk when used in conjunction with traditional stock and bond portfolios.
• Argent has been investing in PE and PRE since 2007.

Philosophy

• Trust in the General Partners is paramount.
• Understand the process, performance, people, and price.
• General Partners should invest meaningfully in their own strategy.
• The General Partners should be skilled, and the strategy should be differentiated.
• Argent prefers small funds in niche markets.  

Process

• Argent conducts investment due diligenceand Mercer conducts operational due diligence to ensure General Partners follow best practices.
• Determine the ideal percentage of PE and PRE based on client circumstances.
  • From there, build a self-funding ladder diversified by firm, vintage year and type of deal.
  • Type of deal:
    • Private Equity
      • Direct, Co-Investments, Secondaries
      • Diversified across industries and sectors
    • Private Real Estate
      • Residential, Industrial, Office, Infrastructure, Hospitality
      • Diversified across geography

Privates vs. Publics Performance

Private companies continue to outperform public indices, but manager selection is critical

1- Balanced, buyout, direct secondaries, growth, private equity fund of funds, private equity secondaries, turnaround, venture capital.
2- Direct lending, distressed debt, mezzanine, private debt fund of funds, special situations, venture debt
Returns may reflect direct investments. Feeder Funds typically have additional associated costs and fees

Portfolio Diversification

Private Markets and portfolio risk/return

Annualized volatility and returns, 1989 – 1Q23

Managers