Data-driven decision making.

At Penguin Capital, we employ an innovative data-driven approach to manager selection. Building on academic research we allow data to guide our selection process.

Supported by those signals, our investment professionals conduct additional qualitative research before a rigorous investment committee process leads to the final manager selection.

Rethinking
Capital

Allocation

Why buying the market
isn't enough.

Private market returns can be astonishing and significantly outperform public markets. This isn't true for the market as a whole though and median private market outperformance barely justifies the illiquidity that comes with the asset class.

With empirical evidence showing a 16.9%1,2 difference in annual returns between top and bottom quartile private equity fund managers, the importance of picking the right GPs becomes obvious.

Why capital allocation
needs rethinking.

Adding alternative assets to a traditional stock & bond portfolio can significantly reduce risk through diversification while providing access to high expected returns from illiquid private market investments. Historically, professional services firms have allocated private capital based on long-standing relationships with fund managers.

With the ever growing amount of structured and unstructured data available, Penguin Capital is rethinking this process and takes a data-driven approach to provide our investment professionals with clear signals of a fund manager's skill.

Our

Process

Decades of academic research on private markets helps guide our allocation and selection process.

We combine empirical evidence with our own findings to identify the best signals of fund manager performance.

The exponential growth of readily available data allows us to take an entirely new approach to fund manager selection. Bandwidth, dealflow, valuation bridges and volatility to name just a few signals analyzed. All in an effort to maximize returns without overstepping the efficient frontier.

Our investment professionals with long-standing track records in private market investing add a layer of qualitative research to our selection process.

Lower

Mid-Market

Rooted in our DNA.

Our founders' proven track record of successfully building (Lower) Mid-Market companies positions us as an unparalleled asset allocator within this space.

Our ability to navigate the complexities of the (Lower) Mid-Market landscape, backed by a history of tangible success, makes us a key asset to both GPs and LPs in the private equity ecosystem.

Abundance of Opportunities.

The Lower Mid-Market presents a rich landscape for investment, teeming with untapped potential.

Despite being the largest segment in any economy, it's marked by market inefficiencies and offers investors low entry valuations in a fragmented marketplace, coupled with plentiful opportunities for value creation.

About

Us

Headquartered in Munich, Germany, Penguin Capital is a Fund of Funds where Science meets Data meets Experience.

Incubated within the Penguin Capital Family Office, both data and the lower mid-market has been part of our founders' DNA since day one.

We strongly believe in skin in the game and our founding families and investment professionals are amongst the largest investors in our funds.

1
Cavagnaro, Daniel and Sensoy, Berk A. and Wang, Yingdi and Weisbach, Michael S., Measuring Institutional Investors’ Skill at Making Private Equity Investments (April 17, 2018). Journal of Finance, Forthcoming, Fisher College of Business Working Paper No.2016-03-14, Charles A. Dice Center Working Paper No. 2016-14,Available at SSRN: https://ssrn.com/abstract=2826633 or http://dx.doi.org/10.2139/ssrn.2826633
2
"The Allure of the Outlier: A Frameworkfor Considering Alternative Investments,” Vanguard, 2015.

Past performance is no guarantee for future performance.