Recently, Michael R. Eisner, Senior Vice President and Chief Investment Officer, Market Street Trust Company, spoke with Max Viscio of Private Asset Management (PAM) Magazine on the subject of private equity and manager selection.
According to Eisner, proper due diligence requires in-depth research. “You really have to do your homework to understand who were the decision makers on investments. You need to ask them and be very specific about seeing all the deals in the fund.”
With regard to fund size and building relationships, Eisner places a high value on intimacy. “We have focused on some of the more small- and mid-sized funds where our check has some meaning. We’re never going to be a big percentage, but you do get to know the teams,” Eisner said. “You go to the annual meeting and it’s not 300 investors in a room at a big hotel in Boston ... [I]t's [a] much smaller and more intimate setting.That’s how we like those relationships.”
For PAM Magazine subscribers, the full article can be found here.