pro•spec•tive
Synonyms of prospective ›
1
2
: relating to or effective in the future
a :
the prospective benefits of this law
likely to be or become
adjective
prospective
likely to come about : EXPECTED
b :
a prospective mother
Prospective Advisors: Successful alternative investing has always been about identifying and investing in exceptional, fiduciary-oriented talent in a well designed and aligned structure.
Prospective Advisors adopts a forward-looking approach focused on future opportunities and trends addressing the aspirations of the world’s largest and most sophisticated institutional investors.
We capitalize on such opportunities by aligning our talents and relationships in true partnership with investment managers and institutional investors.
Prospective Advisor’s core business leverages our historic success identifying and advising established and emerging investment talent. We marry that talent to the world’s largest institutional investors seeking scale portfolio exposure to targeted assets. These investors prefer to operate in Joint Ventures (“JVs”), Separately Managed Accounts (“SMAs”) or small clubs to better tailor their intended exposure in a well-aligned, well-governed and efficient structure.
Prospective Advisors prioritizes strong alignment by becoming a partner in virtually all the new entities it creates.
Our Story
Prospective Advisors leverages its 20+ year success identifying and marrying institutional capital for established and emerging talent, predominantly in the hard asset arena. Co-founders Michael Hoffmann and John Murphy share a long tenure at Probitas Partners, a leading global alternative investment bank, where they were responsible for raising over 100 funds and c. $85 billion of capital. Importantly, nearly 40% of those funds were first-time funds (“FTFs”) where they identified outstanding talent early.
Beginning in 2002 with KPS Capital, Probitas raised capital for 23 FTFs (first-time funds or first-time institutional capital raises). The total capital raised for all 23 FTFs was c. $5 billion.
Those 23 fund managers have gone on to raise or are currently raising between 1 and 7 subsequent funds that in aggregate total more than $118 billion of new capital (>22x AUM growth), many of which are now the de facto leaders in their strategy.
Prospective continues this legacy of identifying exceptional, future leading investment talent.
A Legacy of Identifying and Creating Leading Franchises
Our Pillars of Business
Prospective Advisors continues that targeted search for exceptional talent that chooses to operate in an aligned JV or SMA approach with sophisticated, institutional investors of scale. Specifically, we work with the world’s largest and most sophisticated institutional investors that seek specific portfolio exposure in scale (typically, $200 million - $2 billion+) in targeted assets either to build long-term portfolio exposure, or to capitalize on perceived arbitrage opportunities.
As an owner and partners in our formed JVs and SMAs, we work closely together to advance the shared goals of our enterprises. Our advisory services include identifying new business opportunities, talent recruitment, succession, formation and refinement of investment strategy and structures, and ongoing institutionalization of organizations.
We dynamically survey our targeted institutional investor community to ascertain demand for prospective strategies and assets and share our observations of potentially interesting strategies. Today, sophisticated investors of scale seek to fill white spaces in their real asset portfolios or capitalize on expected opportunities post-COVID and in a high-interest rate environment across both debt and equity. Many of such opportunities are niche in nature and satisfy the hunt for current yield alongside material capital appreciation.
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Identifying and advising established and emerging investment talent. Marry these newly formed entities to the world’s largest and most sophisticated institutional investors seeking scale portfolio exposure ($200-$2b+) to targeted assets predominantly in the hard assets arena.
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Preference for JV, SMA or small club to better tailor intended exposure in well-aligned, well-governed and efficient structures.
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Prospective is a partner in all new entities that it forms.
PROSPECTIVE ADVISORS
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Truly a partner in the new entities that it creates alongside new and existing investment managers
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Compensation is primarily and directly aligned with its partners via carry participation only when successful
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Highly targeted network of deep relationships with the world’s largest and most sophisticated institutional investors
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Creation of institutionally aligned and fiduciary structure, team and administration with quality due diligence and marketing materials, data room, etc., to ensure actionable for the most demanding institutional investor
PLACEMENT AGENT
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Success and compensation is predicated on ability to raise capital to largely pre-determined fund vehicles
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Fees are based on percentage of commitments (typically 1-2%, or more if first time fund)
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Typically a wide-spread, shotgun approach to engaging a breadth of LP contacts (often globally)
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Given significantly larger teams and platforms, large number of mandates (20+ annually) often taken on concurrently to fill bonus pool
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Preparation of due diligence and marketing materials, data room, etc. leveraging legacy GP preparation
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No longer-term alignment with clients or investors
PROSPECTIVE ADVISORS VS PLACEMENT AGENTS
Meet the Team
MICHAEL HOFFMANN | CEO, CO-FOUNDER
Michael founded Prospective Advisors in 2019 and serves as the firm’s CEO, bringing over three decades of rich experience in private markets to his current venture, founded in 2019. Prior to establishing Prospective Advisors, he successfully led Probitas Partners from its inception in 2001, overseeing the firm's rise as a global leader in alternative investment placement, facilitating over $85 billion in capital raises across 100 funds in diverse sectors. His new endeavor, Prospective, continues his legacy by identifying and nurturing first-time and emerging managers, with many of his early picks evolving into major players within the investment community.
Michael started his career in law where he specialized in complex corporate and real estate transactions with prominent law firms. His transition from law to finance saw him manage substantial equity investments in real estate for institutional investors at SSR Realty and Metric Realty, leading Metric’s position as the top multi-family investor in the U.S. His role at AMB Institutional Realty Advisors set the stage for his future endeavors in real estate investment, contributing to the formation of ProLogis, the world's leading logistics property owner. A respected figure in the industry, Michael is a frequent speaker and contributor at top industry conferences and academic institutions. He holds degrees in Real Estate and Law from the University of Wisconsin.
JOHN MURPHY | COO, CO-FOUNDER
John has been a Partner at Prospective Advisors since 2021 and brings a wealth of experience in investment advisory and operations management to the team. He was Chief Operating Officer at Probitas Partners since 2011 where he honed his expertise in alternative investment placement and advisory. His career at Probitas was preceded by significant tenures as Chief Operating Officer and Partner at U.S. Select Holdings, LLC, and similar roles at MacFarlane Partners and Prometheus Real Estate Group, Inc. In these positions, John was instrumental in raising investment capital, pioneering new business lines, and steering organizational restructuring and strategic initiatives.
John’s career began at KPMG, where he established a strong foundation in financial accountability and strategic business assessment, leading to his certification as a public accountant (currently inactive). He graduated magna cum laude with a BS in Business Administration from the University of San Francisco. Throughout his career, John has consistently demonstrated his ability to navigate complex investment landscapes and drive significant operational advancements, making him a pivotal member of the leadership team at Prospective Advisors.
IAN HOFFMANN | PARTNER
Ian joined Prospective Advisors as a Partner in 2022. With over a decade of experience in alternative investments, Ian plays a pivotal role in guiding the firm's strategic direction and development. His expertise has been instrumental in adapting the firm to cater to the dynamic needs of the next generation of participants in the alternative investment industry.
Before joining Prospective Advisors, Ian managed alternative investments at the National University of Singapore, the largest endowment in Asia. His responsibilities spanned a broad spectrum of global illiquid investment markets, across private equity, real estate, infrastructure and private credit. Prior to that, he was with ARA Asset Management in Singapore, focusing on investment and portfolio management across the firm’s Pan-Asia real estate activities. Ian’s background in both strategic investment management and hands-on analytical roles gives him a unique perspective that enriches his contributions to Prospective Advisors and their clients. He holds a Bachelor of Business Administration from Loyola Marymount University.
