Boston, Massachusetts-based Method Advisors is a small-market private equity focused private equity fund of funds managers, which offers its services to institutional and high-net-worth investors. Its investment strategy emphasises the small market private equity space, which it believes has a high return potential due to persistent and exploitable market inefficiencies that it believes exists in the space, and low correlation to other asset classes. The firm focuses on private equity funds with less than $500mn in capital and targets those that will typically invest in portfolio companies with enterprise values of $150mn and under. Whilst its emphasis is on small-cap buyout funds, it has smaller allocations to private debt funds and venture capital funds. It focuses its investments on the US; however it may also invest in select European and Asian funds.
The commitment to Riverside Micro-Cap Fund II emphasises the investment strategy of the fund of funds manager. Managed by Riverside Company - a private equity firm with a focus on small and medium-sized enterprises - the fund closed on a total of $137mn in commitments and will seek to acquire companies with EBITDA of $5mn and under across the US and Canada.