Words to Live and Invest By...

Fireside Reflections on the Private Markets by Shundrawn A. Thomas

Recently, I had an opportunity to sit down with William J. Kelly, CAIA President and CEO of the CAIA Association , at their annual AltsChis 2023 alternative investment industry event. The aim of the event is to bring together leaders from the investment industry to discuss the most relevant topics facing investors, investment advisers, and the broader stakeholder community. This aligns with CAIA’s broader mission to improve investment and societal outcomes through education, transparency and thought leadership. During our fireside chat we engaged in a wide-ranging dialogue. I’d like to pass along a summary of my perspectives on three of the questions that were posed.?

Which private market trends are most noteworthy in the current environment?

Following record highs in fundraising in 2021 and a decade of robust growth in fundraising, the pace has been more restrained over the past 12+ months with most asset classes seeing year-over-year declines. There has been consolidation in preferred asset classes with infrastructure, natural resources, and private debt accounting for all the net positive flows. And there has been what I describe as a “flight to the familiar” as the Funds with greater than $5 billion in assets accounted for 37 percent of total fundraising in 2022 according to research from McKinsey and Company. There are two important opportunities. The first is the opportunity to enhance alpha and impact by allocating to diverse managers. The National Association of Investment Companies (NAIC) offers compelling research on outperformance offered among this cohort of firms. The second is the opportunity to meaningfully revisit what have been relatively stable and static allocations. These are across investment portfolios to optimize risk return given the shift in the term structure of interest rates and the broader access to private markets.

What distinguishes your strategy and approach at The Copia Group?

Our firm provides customized, credit solutions to privately held, lower middle market companies.?Unlike many private credit firms that focus solely on financial returns, The Copia Group seeks to generate durable business growth for portfolio companies, competitive market returns for investors, and significant social impact for all stakeholders.?We specialize in identifying untapped market opportunities and investing in companies that are owned and led by ethnic and gender diverse entrepreneurs, targeting the majority of portfolio investments toward these businesses. We further add value by employing our 4-C Framework designed to provide greater access to the essentials required to scale business growth: Capital, Counsel, Colleagues, and Clients.

What drives your personal commitment to expanding access to capital?

It is partly reflected in the name of our firm.?Copia is a Latin word that means abundance or plenty.?We believe there are boundless untapped opportunities in the private markets. We know that all communities benefit when there is greater access to financial and social capital. This is why we strive to be more than just a financial sponsor and commit to providing the essentials that companies need to grow their businesses as well as their positive impact in society. For me, this is deeply personal. I have seen through my lived experience how not only businesses, but lives, are irrevocably changed when we live and lead in an inclusive manner. As a beneficiary of many forms of grace, I am wholly committed to paying it forward. I conclude with the time-honored admonishment of Theodore Roosevelt who encourages us to “do what you can, with what you have, where you are.” Truly words to live by.

Shundrawn A. Thomas?is the founder and managing partner of?The Copia Group, a diverse owned and led investment adviser providing debt-based capital solutions to privately held, lower middle market companies. To learn more about The Copia Group, follow the company on LinkedIn or visit?https://copiagroupllc.com