United States
Equities Fixed Income External Managers Private Equity and Real Estate Sustainable Investing

Equities

We follow a philosophy that low-turnover, concentrated portfolios derived from sound bottom-up fundamental research provide an opportunity for attractive performance results over time. We have a culture and firm equity ownership structure that help us attract and retain professionals who share those beliefs, and we follow a repeatable investment process that helps us stay true to our philosophy.

Brown Advisory Equity Strategies

Fixed Income

We follow a philosophy that fixed income strategies built from a foundation of stability coupled with fundamental credit research can seek to generate alpha and control risk. We have a culture and firm equity ownership structure that attract and retain professionals who share those beliefs, and we follow a repeatable investment process that helps us stay true to our philosophy.

Brown Advisory Fixed Income Strategies

External Managers

Investment Solutions Group

The Investment Solutions Group is an investment-management team within Brown Advisory that specializes in asset allocation, manager selection, hedge funds and other alternative investment strategies. Dedicated to open-architecture solutions, our team has established a strong track record of identifying high-quality, third-party investment managers across the hedge fund, long-only and private equity universes. We leverage this expertise to help clients assemble portfolios that we believe best fit their needs and goals, offering clients a range of solutions from complete portfolio management to fulfillment of specific hedge-fund and alternative-asset mandates.

Private Equity and Real Estate

Private Equity and Real Estate

Brown Advisory has incorporated private equity and real estate investments in client portfolios since our founding. Today, we can provide that exposure in three distinct ways.

Feeder Funds and Multimanager Funds
We introduce clients to investment opportunities in early- and late-stage venture capital and buyout funds, as well as select real estate funds. We also construct these feeder funds into multimanager funds through our Private Equity Partners (PEP) and Real Estate Partners (REP) vehicles to make private equity investing as easy as possible for our clients.

Customized Private Equity Portfolios
For most clients, private equity is one component of a balanced portfolio that we manage. Other clients, however, come to us specifically for custom-built private equity and real estate portfolios.

Sustainable Investing

Sustainable Investing Strategies

  • Multi-Manager Strategies
  • For clients seeking an open-architecture solution, we have access to several of the premier sustainable managers in the industry - all vetted by internal research.
  • Private Equity
  • Our private equity team is focused on evaluating the growing universe of private impact investments to identify standout opportunities that target various issues of particular concern to our clients. To date, we have placed assets in investments targeting a variety of impact themes such as community impact, microfinance, education technology, sustainable real estate, water initiatives and others.*
  • *Many alternative investments by regulation may only be sold to Accredited Investors (institutions with at least $5 million in assets) or Qualified Purchasers (institutions with at least $25 million in investments).

Customized Portfolios

This diverse assortment of solutions will meet many clients’ sustainability objectives; however, we understand the continued evolution of this space and seek to be able to react quickly to client needs.

For clients with unique missions, value-aligned investing programs, or who simply wish to ensure that they do not own certain controversial companies or have access to certain industries, we offer the following customized options:

Additional Screening: To the extent we have reliable data and can build rules into our compliance systems, we can add specific screens to a separate account to restrict companies (e.g. oil and gas providers) or industries (e.g. tobacco or weaponry).

Customized and Thematic Portfolios: Within a separate account, we can work together to solve for a sustainability need. From a universe of securities researched from both the bottom-up and for their ESG profile, we can assemble a custom portfolio of securities designed to meet many specific sustainable goals or outcomes.

Private Equity and Real Estate

Since our founding, private equity investments have been important components of our balanced approach to constructing client portfolios.

We believe that these opportunities can drive returns, mitigate volatility and provide diversification from traditional public securities.

 

Private Funds at Brown Advisory

We offer clients access to our network of leading private equity managers across vintages, using a "feeder fund" structure so that our clients can gain exactly the exposure they want, easily and cost-effectively. We have formed more than 100 partnerships for our clients to commit over $1 billion directly to private funds that often are limited to large institutional investors. We perform in-depth due diligence on each fund that we consider, marshaling resources from across our investment team to identify, vet and select investments that can help clients achieve their portfolio goals. We introduce clients to investment opportunities across the spectrum of private equity:

  • Buyouts
  • Venture Capital
  • Real Estate
  • Private Debt
  • Energy

Private Equity Partners (PEP)

We construct our Private Equity Partners multimanager vehicles that represent our best thinking around portfolio development and manager selection. Our PEP program represents an evolution beyond standard fund-of-funds structures by concentrating on a small number of high-quality private equity, growth equity and venture capital funds within sectors such as technology, healthcare, energy and consumer. Our investor-friendly fee structure and limited investment period, which allows clients to better understand and control their exposure, creates better alignment with managers. We believe that this more disciplined approach offers the potential to generate consistent returns in excess of public equity markets.

Real Estate Partners (REP)

We construct our Real Estate Partners vehicles to focus on vertically integrated owner/operators to build a concentrated portfolio diversified across property type, geography (primarily within the U.S.) and style to counter concentration risks. REP seeks to provide inflation protection, current income generation and a volatility profile that is lower than public-equity and high-yield markets with a commensurate total return.

 

Customized Private Equity Portfolios

For most clients, private equity is one component of a balanced portfolio that we manage. Other clients, however, come to us specifically for custom-built private equity solutions that leverage our fund and direct investment capabilities. We work with high-net-worth individuals, families and institutions to access and analyze high-quality opportunities. We believe that private equity is an important asset class that can drive portfolio performance.

PRIVATE EQUITY ADVISORY PROCESS

  1. Investment Objectives

    We help clients articulate their risk and liquidity tolerances, as well as their unique investment preferences, and we use that information to create portfolios that seek to maximize long-term returns in line with each client's specific goals.

  2. Asset Allocation

    We create bespoke asset allocations for each client that emphasize a long-term orientation and the use of tactical allocations to capture special situations and opportunities resulting from dislocations.

  3. Portfolio Construction

    We invest clients' assets to create portfolios of strategies, funds managed by third-party investment managers and direct investments, depending on specific preferences. We seek to construct concentrated portfolios of our best ideas, and we prefer to invest with a select group of managers that we follow closely. We believe that there are a small number of high quality managers with whom we want to invest, and we will be patient to gain the opportunity to access these managers. We emphasize efficient diversification, seeking out managers with differing portfolios, strategies or niche focuses to help moderate volatility and downside without overly diluting returns.

  4. Service and Reporting

    We have in-house capabilities to assist clients with all aspects of client service, including reporting, administration, tax and cash management. We seek to provide the personal attention and responsiveness that each client demands.

Private Equity Team

Brown Advisory has incorporated private equity investments in client portfolios since our founding. Today, our team of dedicated professionals seeks to identify the most compelling opportunities to offer our clients.

 

OUR CULTURE:
Being an Investment Firm First

As investors, first and foremost, we know that delivering compelling investment results is paramount to our success. Even the strongest client relationships will erode over time if we do not deliver the long-term performance our clients need to achieve their goals.

*Investments discussed on this page are available for qualified purchasers and accredited investors only.
The value of your investments can fall as well as rise and you may get back less than you invested.

 

More Information About Investing


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