Portfolio Solutions

Private Equity

Makena’s Private Equity portfolio consists of three investment strategies: Buyout, Venture Capital, and Private Alternatives. The Private Equity portfolio is a key component of a broader multi-asset class portfolio. It seeks to deliver an illiquidity return premium over public equities by partnering with proven managers, who have a persistent ability to source attractive investment opportunities across the globe and help create value at their portfolio companies. The Buyout strategy targets mid-cap and small-cap managers with select large-cap exposures; it is balanced across tenured firms and talented newer firms. The Venture Capital strategy leverages Makena’s Silicon Valley network to access seed and early-stage technology managers with complementary exposure to select growth equity and life sciences managers, primarily in the U.S. and China. The Private Alternatives strategy includes opportunistic credit and other idiosyncratic investments with illiquid structures. This allocation allows the flexibility to pursue opportunities not conforming to a traditional private equity portfolio.

Real Assets

Makena’s Real Assets portfolio invests in high-quality Real Estate and Natural Resources opportunities, which can generate attractive returns while providing some inflation protection for a broader multi-asset class portfolio. The Real Estate allocation targets investments which benefit from localized market dynamics characterized by demographic and needs-based demand. We access these investments by partnering with proven managers and operators in bespoke structures that place Makena closer to the asset for better-aligned economics and oversight, while complementing these private investments with a custom high-quality portfolio of public real estate investments. Makena pursues Natural Resources investments on an opportunistic basis, with an emphasis on capturing inflation-hedging characteristics.

Public Equity

Makena’s Public Equity portfolio invests in long-only and long-biased managers who provide exposure to high-quality public companies around the world. We believe we have a competitive advantage in manager sourcing thanks to our extensive network across the investment landscape and we have leveraged that advantage to invest with some of the most talented, capacity-constrained investors globally. The typical manager in the Public Equity portfolio has a proven track record of investing in concentrated portfolios of high-quality businesses, combining robust research processes, intentional portfolio construction, and proactive risk management to deliver superior risk-adjusted returns. By partnering with skilled managers targeting specific areas of inefficiency across sectors and geographies, our portfolio differentiates itself in otherwise crowded markets. Our highly-concentrated manager roster comprises both established firms and emerging managers with each allocation deliberately sized to maximize alpha potential at the portfolio level while ensuring a balanced risk posture that favors liquid structures.

Hedge Funds

Makena’s Hedge Funds portfolio includes long/short equity and opportunistic hedge funds, serving as a risk-mitigating component to the broader multi-asset class portfolio. Long/short equity allocates to managers with proven track records of generating alpha by both buying and short selling stocks. Because the ability to generate durable alpha, particularly on the short side, is a rare skillset, we believe our manager selection expertise is a competitive advantage relative to the market and can deliver risk-adjusted outperformance for our investors. Our opportunistic hedge funds include a handful of credit and differentiated absolute return funds with attractive risk-adjusted return profiles. In aggregate, The Hedge Funds portfolio seeks to diversify a broader, multi-asset portfolio over full market cycles and has a market risk that is less than half that of long-only public equities.