Investment Strategies

Direct Co-GP Investments
The majority of Apparent’s private market investments are made in the General Partner position of the capital stack, alongside the deal sponsors. This investment position carries the same risk profile as the Limited Partner but is ‘un-promoted’ and has the potential to generate a meaningfully higher return. Special situation Limited Partner investments are considered in areas where we have unique insight, expertise, or a particularly strong relationship and trust in the lead sponsor.

Promote & Fee Participation
As a co-GP investor, Apparent often negotiates direct participation in the sponsor’s ‘promote’, or performance fee, where cashflows are split between the GP and LP upon return of the LP’s invested capital. The GP typically invests 5 – 10%
of the equity requirement for a deal but participates in 20 – 40% of cashflows once the LP’s capital is returned and preferred returns are paid, creating asymmetric return upside and a meaningful edge over the LP. Additionally, Apparent can participate in sponsors’ developer fees, which are either paid at the closing in cash or reinvested into the deal as a tax-deferred Class B interest.