Given the evolving nature of Niche Private Equity, Mantra remains sector agnostic, rather targeting specific opportunities that fit its investment philosophy. A few examples of strategies in which Mantra may invest in include: intellectual property, life insurance settlements, oil & gas, mining & minerals, litigation funding, technology applied to water, agribusiness and farming, shipping & aircraft leasing, timber and royalty strategies.

Niche Private Equity strategies typically outline the following key characteristics:

  • High number of investment opportunities in contrast with little available capital
  • Low correlation with other asset classes (in particular with traditional private equity and broader financial markets)
  • Generally cash flowing strategies (and independent of a binary outcome)
  • Teams with proven know-how
  • Generally little or no financial leverage
  • Strong alignment of interests between LPs and GPs

Most investors ignore Niche Private Equity strategies, which can be explained by the following factors:

  • Off the beaten path strategies
  • Difficult to access teams
  • Funds of modest size
  • Specific and intense due diligence required