The National Association of Investment Companies (NAIC) released its most recent financial reports, which focused on its private firms within the U.S. market. By studying investment periods from 1998 to 2010, the report, entitled “Recognizing the Results,” shows that the profits of NAIC firms such as Vista Equity Partners, owned by Robert F. Smith, exceeded previously set financial benchmarks. The success of these firms is attributed to the size of investment portfolios, which are often smaller than general PE accounts.
According to the report, the size and quantity of these portfolios allow NAIC firms to focus on investing in rapidly expanding markets with inherently lower risk. In addition, firms share interests with their business partners, who are typically smaller themselves and part of a limited pool of investors. This symbiotic relationship motivates NAIC firms to manage risk and plan for long-term success more effectively, since profits generated from these investments often represent a large percentage of a firm’s overall income.
More information regarding Vista Equity Partners and NAIC firm data figures can be found at www.naicpe.com.
According to the report, the size and quantity of these portfolios allow NAIC firms to focus on investing in rapidly expanding markets with inherently lower risk. In addition, firms share interests with their business partners, who are typically smaller themselves and part of a limited pool of investors. This symbiotic relationship motivates NAIC firms to manage risk and plan for long-term success more effectively, since profits generated from these investments often represent a large percentage of a firm’s overall income.
More information regarding Vista Equity Partners and NAIC firm data figures can be found at www.naicpe.com.