CHICAGO, December 4, 2023 – FlowStone Partners announced today that FlowStone Opportunity Fund decreased in Net Asset Value (“NAV”) by 1.26% in the third quarter ended September 30, 2023, while the S&P 500 declined 3.27% 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 $675.4 million as of October 1, 2023.
“Our investment strategy seeks to provide core foundational exposure to private equity that can produce consistent long-term risk-adjusted returns with the benefit of an accessible and flexible investment structure. Private equity has always been a long-term asset class where value creation takes place over several years, typically with lower volatility than one would experience in the public equity markets. As such, FlowStone is keenly focused on generating excess risk-adjusted returns over five-to-seven-year investment horizons with concurrent goals of lower volatility and return dispersion. Our performance since inception represents this long-term focus on creating value for shareholders. Despite macro headwinds in the quarter, the Fund outperformed public equity markets and has the potential to create value across market conditions.” said Scott Conners, Managing Director, and President of FlowStone Partners.
“Public market volatility and muted exit activity for privately held companies has driven recent deal flow across both traditional LP-led secondaries and GP-led deals. We remain highly selective in the current market environment with a focus on manager quality, asset valuation and the motivation of sellers. Our investment team has remained disciplined on deployment, and the Fund is positioned to take advantage of portfolio sales from smaller institutional sellers that require liquidity. We think the combination of new potential discounted acquisitions and the existing portfolio of newer vintage GP-led and primary assets, that often require longer term holding periods for value creation, provide complimentary exposures while capital markets are less accommodating for liquidity events. In the current environment, FlowStone will work to create near-term value through more traditional LP portfolio acquisitions at discounts to Net Asset Value and our assessment of intrinsic value.” added Conners.
As of September 30, 2023, the FlowStone Opportunity Fund has returned 90.41% since its August 2019 inception, including 3.81% over the past 1-year ended September 30, 2023. According to recent SEC filings, the Fund is approximately 85% committed/invested with exposure to 205 private equity sponsors and over 1600+ companies across various industries.
FlowStone Partners manages private equity investment products that address the unique requirements of smaller institutional and individual investors by combining the core benefits of private equity secondaries with flexible and accessible fund structures. The FlowStone investment team has over 70 years of combined private equity secondary and primary investment experience. 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 firstname.lastname@example.org 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 09/30/2023 the Flowstone Opportunity Fund’s total return since inception was 90.41% for Class I Shares.
S&P 500: The S&P 500 Index measures the value of the 500 largest publicly traded corporations by market capitalization listed on the New York Stock Exchange or Nasdaq Composite, and is shown for comparison purposes.
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.