José E. Feliciano – Flexible Private Market Investing at Clearlake (Capital Allocators, EP. 297)

Fund Innovations

Clearlake Capital Group has introduced innovative approaches to continuation funds, particularly through single-asset integration vehicles. José Feliciano explains that this strategy involves taking an existing investment and creating a new fund with a single asset, allowing for additional capital infusion and growth potential 1. This approach contrasts with traditional continuation vehicles, which often focus on assets that are challenging to sell. Feliciano emphasizes the importance of transparency with LPs, offering them the choice to continue investing or cash out.

The innovation that we introduced to the market, if you will, was this idea that you could do a single asset integration vehicle.

--- José Feliciano

Clearlake has successfully executed five such vehicles, raising nearly $10 billion, with the first two already returning all capital to investors 1.

   

Capital Trends

Permanent capital strategies are a significant trend in the investment landscape, with Clearlake exploring various approaches. José Feliciano notes that permanent capital can take many forms, such as partnerships with insurance companies or evergreen products like BDCs 2. Although Clearlake hasn't committed to a specific strategy yet, these ideas are under consideration. Feliciano reflects on the importance of role models and resilience in his career, particularly during challenging times like the 2009 financial crisis 3.

The most interesting trend out there that we have to think about is the different versions of permanent capital.

--- José Feliciano

He emphasizes treating people with respect and embracing conflict as essential life lessons 3.