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Friday, 26 February 2016 12:20

DeVos investment firm forms $130M private equity fund

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GRAND RAPIDS — An investment firm that serves RDV Corp., the family office for Amway co-founder Richard DeVos, has formed a $130 million private equity fund.

A regulatory filing with the U.S. Securities and Exchange Commission indicated that four investors collectively invested $130 million into the newly formed Ottawa Avenue Fund 2016 LP, created by Grand Rapids-based Ottawa Private Capital LLC.

The Feb. 9 regulatory filing lists Jerry Tubergen, the CEO of RDV Corp., as president, CEO and managing partner of Ottawa Avenue Fund 2016, and Robert Schierbeek, RDV’s treasurer, as chief operating officer, treasurer and secretary.

A representative for RDV declined to comment on the investment focus of the fund or the industries it will target.

“Ottawa Avenue Private Capital, LLC is a private investment management firm formed to provide investment programs and advice to RDV Corporation and related affiliates, as well as a small number of other high-net worth investors,” RDV spokesperson Ginny Seyferth of SeyferthPR wrote in an email to MiBiz.

Ottawa Avenue Private Capital was incorporated in Delaware on Dec. 16, 2015, according to a filing with the state.

The use of private equity, either through direct investments or professionally managed funds, as an investment tool has been “getting considerable traction” among family offices that manage the wealth of high net worth individuals and families, according to a September 2015 research report by iCapital Network.

Sixty percent of the 162 family offices surveyed in 2013 and 2014, half of them in the U.S., currently invest in private equity and 90 percent of those use funds, according to the iCapital report. More than half of the family offices surveyed who invest in private equity planned to steer more money to it, and nearly 30 percent of those who were not investing in private equity indicated they would in the future.

The reason for the trend is simple: As with any investor, family offices are seeking high returns, and private equity offers “the potential to achieve superior investment performance,” according to the iCapital Network report. About 70 percent of survey respondents said their private equity funds “outperformed other investments within their portfolios and three-quarters (said) their direct investments outperformed other holdings.”

Based on returns through mid-2015, U.S. private equity investing for the prior 12 months generated a median return of 12 percent, exceeding the S&P 500 by 4.6 percent, according to a benchmark report from the Washington, D.C.-based Private Equity Growth Capital Council. Over a 10-year period, annualized returns were 13.1 percent, beating the S&P 500 by 5.2 percent.

Read 19123 times Last modified on Friday, 26 February 2016 12:52

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