Aquaforte is a company that assists Limited Partners (LPs) to establish aligned, high-performing, private equity partnerships with General Partners (GPs).
We seek to combine alignment and performance through the creation of de novo Private Equity vehicles, designing and launching new funds that seek the highest possible benefit for the LPs.
WHAT IS AQUAFORTE?
Aquaforte is a launch pad for new PE funds. More specifically, Aquaforte asists LPs to launch de novo private equity funds for their own account.
Aquaforte is NOT a fund, a fund-of-funds, or even a placement agent. It’s an aligned facilitator.
Aquaforte pursues differentiated PE investment strategies that are based on a singular principle: alignment of interests between LPs and GPs. Everything we do is focused on true partnerships among asset owners and asset managers.
Aquaforte was founded and is being led by Derek Murphy, who established the $12 billion Private Equity program at a large Canadian pension plan with a 5 year net IRR of 19.43% and has successfully established 13 new PE firms, allocating in excess of $8 billion over the past decade and built a top performing PE portfolio and PE investment team.
WHAT DOES AQUAFORTE DO?
Aquaforte negotiates preferred PE fund terms and economics for its clients by launching de novo funds with experienced and successful PE investors. This is done in three domains:
1) Aquaforte launches de novo GPs in which successful PE investors are put into business for themselves (seeding),
2) Aquaforte helps existing GPs launch new approaches or strategies outside of strategies for which they have a track record (new strategies); and
3) Aquaforte helps existing GPs launch funds in which a single LP works with a single GP to quickly launch a tailored fund; we call these funds-of-one.
WHAT IS ALIGNMENT TO AQUAFORTE?
Aquaforte’s mission is to align the interests of LPs and GPs and, in the process, deliver higher, more sustainable returns via actual partnership between GPs and LPs. We do this by helping entrepreneurial PE investors, on behalf of our clients, to launch de novo funds. It is important to note that Aquaforte does not seek to intermediate the relationship between the LP and GP and steps aside after the first fund.
The three key principles of alignment that Aquaforte pursues are simple:
#1: Skin in the Game: We seek a significant cash commitment by a GP to its own fund.
#2: Mutual Dependence: True alignment means that a fund commitment is meaningful for both the LP and the GP.
#3: Compensation: Compensation has have become a hot-button issue in the industry, largely due to complexity and opacity. But achieving alignment in compensation structures is actually straightforward. In short, the bulk of a manager’s compensation should come from financial performance (via carry) over a medium to long-term time horizon, not fees. We know how to ensure this actually takes place.