The Endowment Model

& How You Can Implement It For Your Clients’ Portfolios

Let’s begin by defining the endowment model, and explore how you, the financial advisor can offer it to your clients. ----------------------------- The endowment model, was popularized by ivy league universities. The model invests a percentage of the endowments’ assets into a diversified portfolio that includes traditional equities and fixed income. It also allocates approximately 40% to multiple alternative investment funds like private equity and hedge funds. And has helped Institutional investors who followed these principles earn the highest returns over the last 20 years. ----------------------------- The model aims to diversify against traditional assets and therefore improve risk-adjusted returns. It also places a greater emphasis on manager skill, which means investing with institutional managers. ----------------------------- If you are looking to manage your clients’ portfolios like the large institutional endowments, there are a few points to keep in mind. ----------------------------- You see, universities boast vast social networks which give them greater access to institutional quality investment opportunities, without the conflicts of interest often found in the distribution channels. ----------------------------- Some of the best performing endowments have created a diversified portfolio of multiple managers that each require high investment minimums - which can prevent many high net worth investors from actually participating. ----------------------------- University endowments benefit from the expertise of their investment committees and their in-house teams who handle the administrative complexities associated with alternative investments like portfolio construction, paperwork administration, portfolio monitoring, and liquidity. ----------------------------- Here’s the good news. If you want to pursue a version of the endowment model, but do not have the resources, Crystal Capital Partners can help. ----------------------------- With 25 years of alternative investment experience we filter the universe of private equity and hedge funds to bring you the industry’ institutional managers. We do not take any compensation from any managers on the platform. Our minimum for a diversified portfolio of multiple funds is $1mm, with no per-fund minimums. ----------------------------- Our proprietary portfolio management tools provide you with technology similar to what the large institutions already have. ----------------------------- Then, we simplify the process of subscribing to multiple funds by offering a single one-time electronic subscription document no matter how many funds your clients invest into. Once your clients make an investment, they receive consolidated account statements, capital calls, audits and K1s. ----------------------------- We are seamlessly integrated with all the major custodial platforms, and work with top-tier independent service providers to provide institutional safeguards for your clients’ investments. ----------------------------- Remember, investing in alternatives is a long-term journey. And Our investment team is here to support you every step of the way. -----------------------------

Invest Like the Ivy League Universities.

Bring institutional alternative investments to your clients' portfolios.

DISCLAIMER: This industry information and its importance is an opinion only and should not be relied upon as the only important information available. No representation is being made that any investment will or is likely to achieve profits or losses similar to those shown or described. Performance will vary based on many factors, including, but not limited to, investment strategies, taxes, market conditions, and applicable advisory and other fees and expenses related to investing.

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