“ We believe the most attractive private market opportunities are not found in the largest, most-publicized deals,
but rather, in opportunities that can provide exceptional returns in inefficient markets with strong downside protection. ”
- Keystone National Group, LLC
“ The foundation has been an investor with Keystone for several years now
and has benefited from Keystone’s due diligence process and relationships with hundreds of private fund managers. ”
- Advisor to prominent foundation
“ Through Keystone we gain access to several small buyout funds outside of mainstream private equity. It has been a good relationship for us. ”
- Investment manager of family office
“ Keystone’s due diligence was comparable to that of virtually any of our large, institutional investors, and every bit as rigorous. Notwithstanding the surprising amount of diligence that Keystone did, we found them to be constructive, efficient, and easy to work with. ”
- Small buyout fund manager
“ Keystone’s review and diligence process was broad and detailed. While most limited partners reviewed our diligence binder, Keystone also spent time on site interviewing our staff (including CFO and analyst), verifying net cash flow receipts, and probing into not only the outcomes of each deal, but also our specific contributions to value creation. ”
- Small buyout fund manager
“I use Keystone in my client allocations because I believe it offers important diversification benefits, particularly in this environment. Historically, private equity has had its best performance during periods of economic turmoil and recession. Keystone has a world class fund of funds offering with a compelling expertise in the private equity space. ”
- Investment advisor to high-net worth clients
Overview
Keystone is a private markets investment firm. We manage investment funds and separate accounts on behalf of our clients and investors, which include hundreds of family offices, foundations, investment advisors, wealthy families, and institutions.
Keystone’s focus is on private market, fixed-income oriented investments. This includes investments providing current income, contractual cash flows, and strong downside protection. We seek opportunities in those areas of the private credit markets which are not receiving attention from the largest pools of institutional capital and where Keystone believes competitive levels are lower and risk-adjusted returns more attractive.
Keystone invests in cash flow and credit-oriented investments, including the following:
- New issue senior loans to middle market companies
- Secondary loan pool purchases
- Consumer and industrial loans
- Distressed debt
- Accounts receivable factoring
- Credit card charge offs
- Equipment leasing
- Auto finance
- Bankruptcy claims
- Real estate debt
Keystone believes that better risk-adjusted returns and less volatility can be found in the private credit markets, as compared to public bond and fixed income markets. Broad sourcing capabilities, rigorous investment due diligence, appropriate sector allocation and diversification, and first-class reporting and administration create a high-level of value for our investors.
Keystone National Group, LLC is a registered investment advisor with the Securities and Exchange Commission.
Investment Selection and Management
We seek the most prudent portfolio allocations for the given investment environment and utilize the collective experience of our diverse team. Our team members have reviewed hundreds of private market investments during their careers. Our deep network of relationships, stringent due diligence, and small fund sizes allow us to be highly selective in our investment process. We employ a relative value approach and consider primaries, secondaries, co-investments, fund investments, and direct investments. By investing primarily in fixed income, self-liquidating or amortizing investments, we are able to mitigate risk and shorten duration.
Keystone is an active investor in the private fixed income and credit arena. This includes investments in several sub-sectors, including corporate lending, consumer debt, factoring, distressed debt and other specialty finance opportunities.
Institutional Accounts
Keystone offers separate account services to institutional investors and family offices seeking allocations in targeted sectors within the private credit markets and other contractual cash flow oriented investments. Through a separate account platform, institutional investors can leverage Keystone’s sector knowledge, due diligence expertise, and broad benchmarking abilities to access fund, co-investment and direct investment opportunities.
Keystone believes that by replacing a portion of traditional stock, bond and private equity or venture capital investments with private market investments focused on generating streams of cash flow, our separate account clients can significantly reduce overall portfolio risk and volatility, while simultaneously increasing returns.