Odyssey investment partners is an investment management firm founded in 1988 which focuses on leveraged buyouts. As one of the pioneering private equity investment firms, it has over 30 years of investment experience and insights. This article will provide an introduction to Odyssey investment partners, analyze its investment strategies and performance, assess the risks and returns, and provide suggestions for investors who are interested in private equity investment institutions.
Brief introduction of Odyssey investment partners
Odyssey investment partners was founded in 1988 by Richard E. Hanson and other founders. It focuses on control-oriented leveraged buyouts investments. The investment scope covers media and entertainment, healthcare, financial services and other industries. Odyssey investment partners has invested over $15 billion in equity capital and completed over 165 transactions. Some of its representative investment deals include IMS Health, Imagesat International, Del Laboratories. Overall, Odyssey investment partners has rich experience in private equity investment area.
Investment strategies and performance of Odyssey investment partners
The investment strategies of Odyssey investment partners focus on identifying companies in out-of-favor industries with leading market shares and significant restructuring potential. Its target investment size ranges from $50 million to $500million. According toPitchBook data, Odyssey investment partners fund V raised $982 million in 2005. The performance of fund V is quite strong that it delivered a net IRR of 26% as of 2016. In addition, given its long-term investment experience, Odyssey investment partners has cultivated an extensive global network and resources to add value for portfolio companies after investment.
Risks and returns analysis on Odyssey investment partners
Although Odyssey investment partners has achieved relatively strong historical performance, the risks still exist given the high volatility nature of private equity investments. Firstly, there is liquidity risk which means investors cannot sell their investment freely in secondary markets. Secondly, the due diligence and post-investment management capabilities are quite crucial for private equity firms to generate returns, otherwise there will be investment losses. Lastly, there are macroeconomics risks and industry cyclical risks that can negatively impact the exit environment. In terms of returns, top-tier private equity firms like Odyssey can provide net returns of around 20% historically, which is higher than that of public markets.
Suggestions for investors interested in Odyssey investment partners
For investors who are interested in investing in private equity firms like Odyssey investment partners, firstly they need to have a long-term investment horizon given the illiquid nature. Secondly, they should diversify their investments across different private equity firms and vintages. Thirdly, the appropriate investment amount depends on personal risk appetite but should not be too overweighted compared with public market investments in a portfolio.
In conclusion, Odyssey investment partners is a experienced private equity investment firm with strong historical performance, but still contains risks like liquidity issues. Investors need to have a long-term view and balanced asset allocation when investing in private equity firms.