Pathway believes that successful private market programs are created from a diversified portfolio of high-quality investment funds managed by leading private market firms. Pathway has the same objective for each portfolio: to generate strong, risk-adjusted returns that exceed the public equity markets over the long term. Pathway’s investment philosophy is guided by three key tenets:
The ability to distinguish the best managers is of primary importance when building a high-quality private market portfolio. Industry data shows that the performance spread between upper and lower quartile private market managers is much larger than the spread between managers in other asset classes. Therefore, Pathway believes that the ability to select and gain meaningful access to the best private market managers is paramount to building a high-quality private market portfolio that can exceed public equity indices. As a result, Pathway has dedicated substantial resources to sourcing, evaluating, accessing, and selecting what it believes to be highly knowledgeable, capable, and successful private market managers.
Opportunistic Investment Approach
The environment in which private equity investments are made is constantly evolving. Pathway endeavors to take advantage of prevailing market conditions and the availability of high-quality investment partnerships by maintaining an investment approach that focuses on quality, irrespective of the market environment.
Pathway seeks to construct high-conviction portfolios that are adequately diversified to mitigate risk yet sufficiently concentrated to avoid reversion to the mean.