Investors Capitalize on Record Year for Private Equity with ALPS | Red Rocks Listed Private Equity Fund
GOLDEN, Colo.--(BUSINESS WIRE)--Red Rocks Capital, an asset management firm specializing in private equity (PE) investing, announced today that the ALPS | Red Rocks Listed Private Equity Fund (LPEFX) experienced returns of 41.26% in 2013, outpacing the S&P 500 and other benchmarks, as firms sold assets and completed initial public offerings (IPOs) for their portfolio companies at a record pace.
“It was a very good year for private equity, and we are very proud of the outstanding results we have achieved for investors in the ALPS | Red Rocks Listed Private Equity Fund”
Fueled by strong returns and a vigorous market for deal exits, private equity firms returned $120 billion to investors in 2013, topping last year's record of $115 billion, according to Cambridge Associates, LLC. The strong performance was fueled in part by such publicized transactions as the Blackstone’s record hotel IPO for Hilton Worldwide Holdings Inc. (HLT) and lesser-known deals such as the sale of Allflex Holdings by Electra Private Equity PLC.
“It was a very good year for private equity, and we are very proud of the outstanding results we have achieved for investors in the ALPS | Red Rocks Listed Private Equity Fund,” said Red Rocks Capital Co-founder Mark Sunderhuse, the Fund’s subadvisor. “Private equity is the next wave of liquid alternatives, and our Fund provides advisors and investors with PE returns in a liquid mutual fund structure. We believe that the 40%-plus returns that we achieved last year will show advisors that offering PE to their clients can help differentiate their practice and increase their book of business.”
The ALPS | Red Rocks Listed Private Equity Fund provides liquid access to some of the top private equity managers in the world. The Fund utilizes a specialized investment strategy that provides direct exposure to private equity investments with diversification across private equity manager, industry, geography, stage of investment, vintage of investment, and capital structure.
About Red Rocks Capital, LLC
Red Rocks Capital is an asset management firm specializing in listed private equity securities. The ALPS | Red Rocks Listed Private Equity portfolio gives investors access to an asset class that has historically had high barriers to entry due to investor qualification, long lock-up periods, and high initial investment minimums. Established in 2003 by Founders and Co-Portfolio Managers, Adam Goldman and Mark Sunderhuse, Golden, CO-based Red Rocks Capital was one of the first companies to offer access to private equity through a liquid mutual fund structure. It is currently the largest asset management firm that is focused exclusively on listed private equity, with approximately $1.2 billion in assets for advisor-sold mutual funds and variable annuities for institutions and investors. For more information, visit the firm’s website, www.redrockscapital.com, or call 303-679-8252.
ALPS provides customized asset servicing and asset gathering solutions to the financial services community through an entrepreneurial culture based on the commitment to "Do Things Right." Founded in 1985, ALPS continues to actively promote all of its various business segments, from asset servicing through ALPS Fund Services, Inc. to asset gathering through ALPS Distributors, Inc. and ALPS Advisors, Inc. Headquartered in Denver, with offices in Boston, New York, Seattle, and Toronto, ALPS, a wholly-owned subsidiary of DST Systems, Inc., today represents more than 400 employees, over 200 clients, and an executive team that has been in place for more than 18 years. For more information about ALPS and its services, visit www.alpsinc.com. Information about ALPS products is available at www.alpsfunds.com.
|ALPS | Red Rocks Listed Private Equity Fund Class A Performance|
|as of 12/31/2013||1 month||3 month||YTD||Since Inception|
|Class A (NAV)||3.28%||11.02%||41.26%||-1.59%|
|Class A with sales charges (MOP)||-2.41%||4.93%||33.47%||-6.99%|
|MSCI World Index||2.12%||8.00%||26.68%||19.38%|
|S&P Listed Private Equity Index||2.22%||6.44%||37.19%||11.43%|
|Average Annual Performance|
|as of 12/31/2013||1 year||3 year||5 year||Since Inception|
|Class A (NAV)||41.26%||14.42%||21.55%||-0.27%|
|Class A with sales charges (MOP)||33.47%||12.27%||20.21%||-1.20%|
|MSCI World Index||26.68%||11.49%||15.02%||3.00%|
|S&P Listed Private Equity Index||37.19%||13.50%||25.46%||1.82%|
Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. The fund imposes a 2.00% redemption fee on shares held for less than 90 days. Performance data does not reflect the redemption fee which if reflected would reduce the performance quoted. For the most current month-end performance data, please call 1-866-759-5679.
The recent growth in the stock market has helped to produce short-term returns for some asset classes that are not typical and may not continue in the future.
Stage of Investment: a method of classifying private equity strategies and firms.
Vintage of Investment: the year in which the first influx of investment capital is delivered to a project or company. This marks when capital is contributed by venture capital, private equity fund or a partnership drawing down from its investors.
Listed Private Equity Companies are subject to various risks depending on their underlying investments, which could include, but are not limited to, additional liquidity risk, industry risk, non-U.S. security risk, currency risk, credit risk, managed portfolio risk and derivatives risk (derivatives risk is the risk that the value of the Listed Private Equity Companies' derivative investments will fall because of pricing difficulties or lack of correlation with the underlying investment). There are inherent risks in investing in private equity companies, which encompass financial institutions or vehicles whose principal business is to invest in and lend capital to privately-held companies. Generally, little public information exists for private and thinly traded companies, and there is a risk that investors may not be able to make a fully informed investment decision.
Listed Private Equity Companies may have relatively concentrated investment portfolios, consisting of a relatively small number of holdings. A consequence of this limited number of investments is that the aggregate returns realized may be adversely impacted by the poor performance of a small number of investments, or even a single investment, particularly if a company experiences the need to write down the value of an investment.
An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus which contains this and other information call 1-866-759-5679 or visit www.alpsfunds.com.
The Fund is not suitable for all investors. An investor considering the Fund should be able to tolerate potentially wide price fluctuations.
An investment in the Fund involves risk, including loss of principal.
Diversification does not protect against losses in a declining market.
Asset allocation cannot assure a profit nor protect against a loss.
ALPS | Red Rocks Listed Private Equity Fund is a series of Financial Investors Trust.
ALPS Portfolio Solutions Distributor, Inc. is the distributor for the ALPS | Red Rocks Listed Private Equity Fund.