CHICAGO, August 30, 2023 – FlowStone Partners announced today that FlowStone Opportunity Fund increased in Net Asset Value (“NAV”) by 2.82% in the first quarter ended June 30, 2023, while the S&P 500 was 8.74% over the same period. The 1940 & 1933 Act registered investment vehicle was launched in August 2019 to provide qualified investors diversified exposure to private equity through an actively managed secondary-focused strategy. The change in NAV and net inflows from shareholders increased overall assets in the Fund to over $662.8 million as of July 1, 2023.
“The Fund has produced consistent NAV growth by leveraging the benefits of private equity secondaries within a registered fund structure. Over the past several quarters our shareholders have benefited from fair market value growth of existing fund interests and the acquisition of new fund interests through secondary transactions that are often acquired at discounts to their existing carrying value,” said Scott Conners, Managing Director, and President of FlowStone Partners.
“The recent advances in public equity markets have provided temporary relief to some expectant sellers even as capital calls continue to outpace distributions from underlying sponsors. We would expect an increase in activity if public markets experience increased volatility in the 2H of the year. Despite the recent performance gains in equity markets, the macro environment remains uncertain and liquidity conditions remain tight. We think this backdrop could create attractive opportunities for secondary investors at the smaller end of the transaction market where sellers have less options,” added Conners.
As of June 30, 2023, the FlowStone Opportunity Fund has returned 92.84% since its August 2019 inception, including 5.61% over the past 1-year ended June 30, 2023. According to recent SEC filings, the Fund is approximately 94.4% committed/invested with exposure to 202 private equity sponsors and over 1500+ companies across various industries.
About FlowStone
FlowStone Partners provides qualified high net worth and institutional investors with highly diversified exposure to the Private Equity asset class through secondary, primary, and co-investment strategies. The FlowStone senior investment team has over 75+ years of combined private equity secondary and primary investment experience. As opposed to traditional closed-end fund-of-funds vehicles, our investment strategies are executed through investment vehicles that strive to meet the unique requirements of high-net-worth investors, family offices and smaller institutional institutions. The FlowStone team has the ability to design and manage co-mingled fund products and, using this same private-equity expertise, the potential to build customized vehicles with bespoke strategies to accommodate the needs of a variety of investor types. Learn more at https://flowstonepartners.com/.
IMPORTANT INFORMATION – FLOWSTONE OPPORTUNITY FUND
The performance data shown represents past performance. Past performance is no guarantee of future results. Investment return and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance quoted. Email flowstoneinvestorrelations@flowstonepartners.com for additional information or visit www.flowstonepartners.com for details related to the Fund’s performance..
Past performance does not guarantee future results. As of 06/30/2023 the Flowstone Opportunity Fund’s total return since inception was 92.84% for Class I Shares.
Russell 2000 Index: The Russell 2000 Index is a small-cap stock market index that makes up the smallest 2,000 stocks in the Russell 3000 Index. It is not possible to invest directly in an index.
Returns are presented net of expenses. Expense ratios are 4.78% for Class A shares; 4.23% for Class D shares; 3.93% for Class I shares; 3.93% for Class M shares. Performance figures do not reflect the 2% early repurchase fee that may apply to some unit holders. Expenses are estimated as of the Fund’s prospectus, effective July 31, 2023.
This material is published as assistance for recipients, but does not constitute investment advice and is not to be relied upon as authoritative nor to be substituted for one’s own judgment. This information is not a recommendation to purchase or sell a security or follow any strategy or allocation. Before making any investment decision, you should seek expert, professional advice and obtain information regarding the legal, fiscal, regulatory and foreign currency requirements for any investment according to the laws of your home country and place of residence.
The information contained herein reflects views as of a particular time, and is subject to change without notice. It is for illustrative purposes only and may not be representative of current or future investments or allocations. Any forward-looking statements are based on assumptions, and actual results may vary from such statements. There is no requirement to update information provided, unless otherwise required by applicable law. While reasonable efforts have been used to obtain information from reliable sources, no representations or warranties are made as to the accuracy, reliability or completeness of third-party information presented. The information contained in this document is unaudited.
