Iglesias, Humphreys, Fleming aim for Continuity

The Australia-headquartered firm aims "to be the leading illiquid assets advisory and asset management firm in the Asian region."

"The founding partners … have worked in illiquid asset markets for over 15 years, and have extensive experience advising on, investing in, and managing illiquid assets across economic cycles," Fleming told AVCJ. Market-watchers had been watching for their next move with interest following their departure from Wilshire in March this year. Fleming described the team as "three professionals who've got a lot to contribute."

Friendly parting, fine future

Iglesias was keen to emphasize that, "the three of us left Wilshire on good terms." He was still more ready to underline that, "we will have the luxury of designing something for the future." Fleming confirmed that the new vehicle will be focusing on "a broader opportunity than we were previously involved in."

The new firm will offer advisory services, non-discretionary investment mandates, and discretionary mandates and funds of funds across a range of illiquid asset classes, including private equity, real estate, credit, natural resources and infrastructure. Fleming told AVCJ that the overarching brief is to "help investors analyze and understand the illiquid opportunity set and provide customized solutions."

Iglesias and his colleagues claim to have pursued a very quantitative and research-driven approach to investing. Humphreys characterized Continuity as in part "an opportunity to provide that research-driven philosophy to a whole range of illiquid asset classes … We think that's what the market is looking for."  This builds in part on Iglesias and Humphreys' past work at Total Risk Management (Towers Perrin) and Russell Investment Group, as well as Wilshire.

"Our investment philosophy for Continuity Capital is based on three key tenets – research, risk management and results," Fleming concluded.

Asset class and Asian focus

Continuity is launching with a very Asia Pacific-focused thesis, based partly on the founders' experience in the region, but also seeking to tap its fundamentals and international appeal. However, the business will not be rolling out all its features, or establishing all the links in its value chain, at once.

"Our ambition is to focus in Asia," Iglesias pointed out, but he added, "We'll not be engaging with the GP community just yet. The most meaningful discussions are going to take place once we have some capital."

"It's the advisory work we'll have to focus on initially," confirmed Fleming.
The new firm will also seek to engage with the newly emerging Asian LPs, but it will be primarily looking at capital flows worldwide targeting the region. "We will source investors from all around the world to help them get investments in Asia," Fleming added. "Our goal is to cover the whole of the Asian region from multiple offices."

Part of Continuity's launch thesis is the claimed capability to invest and advise across multiple illiquid asset classes. However, Fleming told AVCJ, "Our first priority in terms of illiquid assets is private equity. A key driver of value for private equity is the growth trajectories of the large emerging economies (China, India) and the trade relations between these economies and the rest of the region. Core developed economies such as Japan, South Korea and Australia are benefitting in many ways."

While adding that, "private credit and real estate are also very attractive," Humphreys confirmed that, "in private equity, the manager universe is much larger." Continuity is targeting mid-market buyout and growth deals as what it sees as the most attractive private equity sub-segment in Asia. "The best risk-adjusted returns come from small-to-midsize buyouts and growth equity where there is substantial minority control," noted Iglesias.

In their previous franchise, the Continuity team managed over $3 billion of discretionary portfolios for global LPs. Time will tell how the new firm levers that track record in conjunction with the new set of Asian opportunities. 

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