Mount Ocean’s business model is designed to help protect GP economics while providing the benefits of decades of knowledge about building and managing investment firms. We seek to improve the likelihood of an early-stage investment business enduring for the long-term if they are fortunate enough to gain traction and generate strong investment results.

The cost of capital offered by GP stakes firms and placement agents to early-stage niche firms is often higher than their already steep terms to compensate for the lack of scale and early-stage risk. The terms are so drastically tilted in the providers’ favor that an emerging manager’s ability to build a solid business while attracting and retaining outstanding talent is threatened. 

Consulting - Mount Ocean’s retainer-based consulting practice positions clients to  address the business risks that undermine promising firms. Quality infrastructure and controls are non-negotiable for any allocator considering investing with a niche manager. Determining if a founder can run an investment business and retain their team is the most important  non-investment question when backing a manager. 

Capital Formation - Mount Ocean’s capital formation fees are discounted relative to the market for similar services and are typically charged over a longer time-period thereby exerting less economic drag on an emerging firm’s P&L during its critical formative years. Furthermore, our capital formation model is completely success-based. We don’t charge a retainer and the manager receives decades worth of business structuring wisdom. 

In summary, we rely on the quality of our investment underwriting and capital formation capabilities to bet on a manager’s marketability and engage under terms that are constructed to be GP-friendly so clients can spend money where it matters most, on paying their people and executing their strategy.