One Focus, Two Strategies

Fund of Funds and Co‑Investments in the Lower Mid‑Market

Penguin Capital’s investment approach is dedicated exclusively to the Lower Mid-Market (LMM), a space that offers high growth potential with low entry multiples and a unique capacity for value creation. We pursue this focus through two complementary strategies: our Fund of Funds (FoF) and our Co-Investment vehicle. Together, they offer a balanced path to accessing premium LMM opportunities while mitigating risks through diversification and manager selection.

Lower Mid‑Market Fund of Funds (FoF) 

Overview

Our Fund of Funds strategy provides diversified access to carefully selected private equity managers in the LMM. This fund assembles a robust, balanced portfolio of top tier PE funds, offering investors broad exposure to different sectors, geographies, and management styles while delivering enhanced returns through disciplined manager selection and asset allocation.

• Access to Premium Managers: With our large sourcing funnel and proprietary dataset, we screen over 200 potential funds annually to select top-performing managers with consistent track records and a clear path to continued outperformance. Our rigorous due diligence process, combining quantitative and qualitative assessment, helps identify funds that exhibit strong return predictability.
• Diversified and Risk-Optimized Portfolio: The FoF strategy minimizes idiosyncratic risk by investing across various sectors and regions within North America, Western Europe and select global markets. This diversification enhances resilience, lowers volatility, and reduces exposure to individual market cycles or sector-specific downturns.
• Efficient, Scalable Entry: Our FoF structure enables investors to enter the LMM with smaller capital commitments than direct PE investments typically require, offering a scalable and efficient way to access high-quality LMM assets with minimized risk.

Key Benefits of Our FoF Strategy 

• Risk Minimization through sectoral and geographic diversification
• Exposure to a network of best-in-class LMM PE managers
• Optimized returns through structured manager and portfolio selection 

Co‑Investment Fund

Overview 

Our Co-Investment strategy offers direct access to high-growth opportunities alongside our top PE managers, providing investors with a focused approach to capitalize on specific high-performing assets. This vehicle is designed to complement the broader exposure of our FoF strategy, allowing investors to target individual assets that offer unique upside potential.

• Direct Access to High-Growth Assets: We leverage our deep relationships with fund managers to access high-quality investment opportunities. These co-investments provide a path to high returns by focusing capital on selected companies with proven growth trajectories or underexploited value.
• Disciplined, Data-Driven Selection: Each co-investment is thoroughly vetted using our proprietary data and team expertise, ensuring that each asset aligns with our rigorous investment criteria. Our team focuses on assets that demonstrate resilient fundamentals, potential for operational improvement, and the ability to scale while sitting squarely in the investment sweetspot of the respective manager.
• Asymmetric Upside with Managed Risk: The co-investment strategy enables investors to capture the upside of direct investments while benefiting from the risk management techniques honed in our FoF approach. This creates a balanced, asymmetric risk profile where upside potential outweighs downside exposure.

Key Benefits of Our Co‑Investment Strategy  

• Targeted access to select high-growth assets
• Potential for higher returns within a structured, risk-managed framework
• Utilization of proprietary dataset to select investments that fall within the manager’s sweet spot