FlowStone Partners Reaches $100 Million in AUM After Only Six Quarters

CHICAGO, March 16, 2021 /PRNewswire/ -- FlowStone Partners announced today that it has exceeded $100 million of assets under management (AUM) in the FlowStone Opportunity Fund. The 1940 & 1933 Act registered investment vehicle was launched in August 2019 to provide qualified high-net-worth and smaller institutional investors diversified exposure to private equity through an actively managed secondary-focused strategy. For funds with this strategy and structure, the FlowStone Opportunity Fund is among the quickest to crest the $100 million threshold.

FlowStone's investment team has more than 65 years of combined private equity secondary and primary investment experience. The Fund is continuously offered, allowing investors to decide when to allocate, which provides a key difference from traditional private equity funds that close following fundraising goals. Other differentiators include lower investment minimums, limited liquidity available through the tender offer process, and Form 1099 investor tax reporting with early Q1 availability.

"We are encouraged by the confidence investors have shown in our team and the value that they see in FlowStone's unique combination of investment strategy and fund structure.  We're hopeful that we'll continue on our current growth trajectory," said Scott Conners, Managing Director and President of FlowStone Partners. "Our growth after just six quarters allows FlowStone Opportunity Fund to compete for sources of capital not previously available to us. Our team remains focused on generating strong risk-adjusted returns and providing informative investor relations. Our senior leadership team has extensive experience successfully managing similar strategies, and we are now positioned to bring our institutional experience to the full breadth of underserved investors who have not previously had access to secondary-focused private equity."

As of December 31, 2020, the FlowStone Opportunity Fund has returned 23.2%, annualized, since its August 31, 2019, inception.  The Fund returned 25.7% in the One Year Ended December 31, 2020, and 18.3% in the Quarter Ended December 31, 2020. According to recent SEC filings, the Fund is approximately 83% committed/invested with exposure to 29 private equity managers and 187 companies across various industries.

About FlowStone Partners
FlowStone Partners provides qualified high-net-worth and institutional investors with highly diversified exposure to the Private Equity asset class through secondary, primary, and co-investment strategies. The FlowStone senior investment team has over 65 years of combined private equity secondary and primary investment experience. As opposed to traditional closed-end fund-of-funds vehicles, our investment strategies are executed through investment vehicles that strive to meet the unique requirements of high-net-worth investors, family offices and smaller institutional institutions. The FlowStone team has the ability to design and manage co-mingled fund products and, using this same private equity expertise, the potential to build customized vehicles with bespoke strategies to accommodate the needs of a variety of investor types. Learn more at https://flowstonepartners.com.

Investor Relations
Mark Phillip, Managing Director
[email protected] 
312-429-2489

Media Contact
Michael Walsh
[email protected] 
612-718-8952

IMPORTANT INFORMATION - FLOWSTONE OPPORTUNITY FUND
Past performance does not guarantee future results.

Returns are presented net of estimated gross expenses of 7.94% and 5.11%, net of Fee Waiver and/or Expense Reimbursement of 2.83%. If the Fee Waiver and/or Expense Reimbursement had not been in place, returns would have been lower. Performance figures do not reflect the 2% early withdrawal fee that may apply to some unit holders. Expenses are estimated as of the Fund's prospectus date, effective August 5, 2020.

This material is published as assistance for recipients, but does not constitute investment advice and is not to be relied upon as authoritative nor to be substituted for one's own judgment. This information is not a recommendation to purchase or sell a security or follow any strategy or allocation. Before making any investment decision, you should seek expert, professional advice and obtain information regarding the legal, fiscal, regulatory and foreign currency requirements for any investment according to the laws of your home country and place of residence.

The information contained herein reflects views as of a particular time and is subject to change without notice. It is for illustrative purposes only and may not be representative of current or future investments or allocations. Any forward-looking statements are based on assumptions, and actual results may vary from such statements. There is no requirement to update information provided, unless otherwise required by applicable law. While reasonable efforts have been used to obtain information from reliable sources, no representations or warranties are made as to the accuracy, reliability or completeness of third-party information presented. The information contained in this document is unaudited.

BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. THIS AND OTHER INFORMATION IS IN THE PROSPECTUS, A COPY OF WHICH MAY BE OBTAINED FROM FLOWSTONE PARTNERS AT 312–429–2419. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.

The Shares are speculative and illiquid securities involving substantial risk of loss. An investment in the Fund is appropriate only for those investors who do not require a liquid investment, for whom an investment in the Fund does not constitute a complete investment program, and who fully understand and can assume the risks of an investment in the Fund.

Investors should carefully review and consider potential risks before investing. The Fund has been organized as a non-diversified, closed-end management investment company and designed primarily for long-term investors. An investor should not invest in the Fund if the investor needs a liquid investment. The Fund could experience fluctuations in its performance due to several factors. As a result of these factors, results for any previous period should not be relied upon as being indicative of performance in future periods.

The Fund Investments may include low grade or unrated debt securities ("high yield" or "junk" bonds or leveraged loans) or investments in securities of distressed companies. Such investments involve substantial, highly significant risks. The Fund may invest in mezzanine debt instruments, which are expected to be unsecured and made in companies with capital structures having significant indebtedness ranking ahead of the investments, all or a significant portion of which may be secured. The Portfolio Fund Managers and (subject to applicable law) the Fund may employ leverage through borrowings or derivative instruments and are likely to directly or indirectly acquire interests in companies with highly leveraged capital structures. The Fund and Portfolio Fund Managers may use derivatives and the use of derivative instruments for hedging or speculative purposes by the Fund or the Portfolio Fund Managers could present significant risks, including the risk of losses in excess of the amounts invested. The overall performance of the Fund's secondary investments will depend in large part on the acquisition price paid, which may be negotiated based on incomplete or imperfect information. Secondary investments may also incur contingent liability risk and syndicate risk. Potential lack of diversification and resulting higher risk due to concentration of allocation authority when a single adviser is utilized. The Adviser does not control the investments or operations of the Portfolio Funds. For a complete discussion of risks please review the prospectus carefully. Investors may redeem their units at NAV, quarterly (subject to a one year lock-up period and 2.00% Maximum Early Repurchase Fee (as a percentage of the repurchased amount), 5% of fund-level AUM cap, and Board approval).  Distribution services provided by Foreside Financial Services, LLC.

SOURCE FlowStone Partners

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