Setter MD launches FoF secondaries business – exclusive

Optimize Capital Partners has seven professionals including a former Portfolio Advisors managing director.

Setter Capital managing director Robert McGrath has left the firm and launched a secondaries business focusing on funds of funds, Secondaries Investor has learned.

McGrath has co-founded Toronto-based Optimize Capital Partners, according to a source familiar with the matter. The business helps institutional investors achieve target allocations to private markets through purchases of stakes in funds of funds, according to its website.

“As diversified high quality pools of assets, funds of funds are the perfect building blocks for private equity programmes,” the website notes. “And with return targets commensurate with the lower risk nature of fund of funds investments, OCP can offer sellers attractive prices.”

OCP seeks stakes in funds of funds which have between $10 million to $200 million-plus or more in net asset value, and are between 2004- to 2012-vintage across generalist, large buyout, distress, energy and venture capital strategies. The firm prefers global, as well as US and Europe and some emerging market-focused funds.

The firm has seven staff, including chairman Matthew McGrath, who has been a senior partner at Optimize Wealth Management since 2009, and former Portfolio Advisors managing director Ryan Butler, who is listed as an advisor. Butler left Connecticut-headquartered Portfolio Advisors in 2015, according to his LinkedIn profile.

It is not clear whether OCP is part of Optimize Wealth Management.

McGrath, who co-founded Setter in 2006 with his brother Peter, declined to comment.