RueOne is an independent private equity firm offering family offices and institutional investors exclusive access to high quality, sponsored direct and co-investment opportunities on a deal by deal basis. With RueOne, investors can invest directly in a diverse range of individual investment opportunities such as a single private equity transaction or a real estate project – not funds. These individual assets are sourced and managed from leading asset managers with specific domain expertise. You can now capitalize on the structuring knowledge, due diligence capability and ongoing management of professional asset managers, with the added benefit of RueOne’s curation and oversight.
RueOne has the flexibility to sponsor deals or work with external sponsors with the result of providing investors a single point of entry for unique transactions. Our institutional-quality platform features attractive investments sourced from our extensive proprietary, global network and managed by top investment talent, as well as a best-in-class infrastructure.
Direct investing in alternatives has historically been burdensome for investors in many respects. From high minimums to the extensive due diligence requirements, most qualified investors could not participate. RueOne has simplified the process, using technology to level the playing field and provide greater access.
Here’s how it works:
Step 1: Browse Our Pre-Vetted Selection of Deals
Step 2: Access Our Deal Room and Perform Due Diligence
Step 3: Make Your Investment
Step 4: Monitor Your Investment Directly
Traditional alternatives investing offers access to real estate, private debt/equity and other alternatives through commingled vehicles/funds. Managers of these funds mismatch assets and liabilities, typically have full discretion, and impose high investment minimums. RueOne is offering investors access to individual alternative assets, rather than a fund. RueOne’s transparent investment structure seeks to mitigate some of the structural flaws that exist with the traditional fund model, while giving investors greater choice.
These structural flaws were exposed in the financial crisis and persist in today’s low-rate investing climate. Lack of transparency, arbitrary valuations, forced selling in tough market conditions, subscriptions/redemptions at fixed intervals, and fees on committed capital are some examples of inherent problems with fund structures.
Every offering on RueOne’s platform has full transparency. The investment is managed by RueOne and sub-advised by the asset manager. Investors benefit from the structuring and ongoing management expertise of the asset manager, with additional oversight by RueOne. Subscriptions are only accepted at the inception of the deal. Further, since the investments are structured to be held to maturity if necessary, there are no issues with forced selling or liquidations in difficult market conditions. Lastly, RueOne will only start accruing management fees once the offering has finalized and the capital is deployed. Performance fees are only collected on realized gains, in contrast to the fund structure where managers collect fees on unrealized gains. Please see our FAQ below for more information on fee structure.
RueOne sources its deals from its vast network of sophisticated asset management firms that have fiduciary responsibilities to their investors. Each brings unique strategies and specific domain expertise that are compatible for our platform. Private debt/equity, real estate and credit/yield structures are representative of the types of asset classes offered to investors. We form partnerships with asset managers that see interesting direct investment opportunities, but for various reasons are unable to fully monetize them. Fund raising for managers has been challenging, especially for illiquid and niche strategies. Some managers raise funds for projects on a deal-by-deal basis. RueOne provides an alternative for these managers to pursue deals and raise capital. Additionally, some investments may not fit a certain manager’s mandate, but may be ideal for RueOne’s distribution. By partnering with us, these managers can capitalize on all of their deal flow, without needing to pass on compelling opportunities.
RueOne provides an institutional-grade investment, operational and compliance / governance infrastructure. All transactions listed on our platform undergo a rigorous pre-vetting process. Only a small percentage of the transactions reviewed by the RueOne investment team are ultimately listed on the platform. The asset managers themselves source, structure and perform due diligence on each alternative investment. Then, the RueOne team performs extensive due diligence on each asset manager prior to forming a partnership. Our process includes quantitative and qualitative assessment of the manager, including on-site visits with their team. We also perform background, criminal and credit checks of all principals to comply with KYC, AML and Bad Actor regulations. At the transaction level, all deal terms, assets, financial reports, and comparable transactions are thoroughly analyzed by RueOne investment professionals. To the extent needed, an on-site visit of assets involved in the transaction may also be performed. Lastly, both the asset manager and RueOne will commit capital to each listed transaction, ensuring alignment of interests with investors.
After investor funds have been transferred into an escrow account and the minimum target amount for a particular offering is reached, the pooled funds are released and sent into a Special Purpose Vehicle (SPV), which in turn will fund the investment. Investors will own a pro-rata share of this SPV. It will be managed by RueOne and sub-advised by the asset manager who sourced the deal, providing an additional layer of oversight. Additionally, each SPV will be reviewed by an independent, third party administrator and auditor. Simplified investment and tax reporting are added benefits of this structure. These additional layers of protection are unique to the RueOne platform and enhance investor comfort with the entire process. Alternative investments are unique by design. As such, the structure, terms and time frame of these will vary from deal to deal.
RueOne aims to be an investor-centric platform. As a result, we operate as an investment adviser, not a broker. We don’t receive a percentage of proceeds raised for a transaction, as many other platforms do, and instead are compensated with a management and incentive fee. We make the commitment that all fees will always be clearly disclosed and investors can expect the overall fees paid to be comparable to investing directly in an alternative investment fund. RueOne doesn’t add an extra layer of fees like many other platforms or fund of funds. We share economics with our partners. Additionally, performance fees or carried interest will only be collected on realized profits. Unlike funds that charge management fees on committed capital before it’s deployed, RueOne will only collect management fees when capital is put to use.
Time frames for each investment will vary. In general, these are not liquid investments and investors need to understand that while RueOne will always try to accommodate investors, there may not be liquidity or a secondary market for their investment. By design, direct investing in alternatives is meant to provide diversification from the short term volatility of public markets and can be beneficial for long term growth. In volatile markets, our structure helps prevent the forced selling at fire sale prices that managers face in the fund structure. Each deal will have clearly laid out expectations for the maturity or monetization of the investment. With that said, although no liquid secondary market currently exists, RueOne will do everything we can to ensure that investors have resale options when needed. We are currently in talks with various providers of secondary market liquidity to find options for investors after certain conditions associated with resale of restricted securities are met.