It also uses a number of tactics to make sure clients are diversified not just among a number of different private equity investing strategies but among funds with different start dates, or "vintages." The result is a series of staggered investments, not unlike a bond ladder. Other times, Wells Fargo uses private equity fund of funds which can accomplish the same goal. Florance says the firm works hard to make sure investors understand the terms.
"You can't change your mind for 10 years," he says. "That's a big commitment."
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