San Francisco-based Dragoneer Investment Group is an investment management firm that manages pooled investment vehicles like hedge funds and private equity funds. This firm doesn't, however, serve individuals.
The firm employs a handful of financial advisors that are responsible for the oversight of billions of dollars in assets under management (AUM). If you're looking for a traditional investment advisory firm - that is, one that provides individual clients with financial planning and investment management services - you can find one through SmartAsset's financial advisor matching tool.
Dragoneer Investment Group Background
Dragoneer Investment Group first opened its doors in 2012. The firm is a limited liability company (LLC), and it’s owned by Marc Stad and several other employees. Stad appears on Fortune's "40 Under 40" list for 2021.
Dragoneer Investment Group Client Types and Minimum Account Sizes
Currently, Dragoneer Investment Group works entirely with pooled investment vehicles, which are various types of investment funds that pool money from multiple investors. The funds under the firm's control include hedge funds and private equity funds.
Dragoneer Investment Group does not institute an exact minimum account requirement to become a client. However, some of the investment funds that the firm advises have minimum investment stipulations that can range as high as $25 million.
Services Offered by Dragoneer Investment Group
The hallmark service at Dragoneer Investment Group is its discretionary investment management services, which it offers directly to its in-house investment funds and indirectly to the investors in these funds.
For sponsored funds, the firm seeks to construct portfolios with assets that are characterized by high growth and solid financials. For non-sponsored funds, the firm will develop investment guidelines according to their individual investment objectives and provide management that adheres to that criteria.
Dragoneer Investment Group Investment Philosophy
While Dragoneer will tailor its investment approach and strategy to best suit each fund's specific goals, the firm generally seeks to construct portfolios of equities with strong potential for growth. To identify possible investments, the firm conducts rigorous fundamental analysis, which involves analyzing a company’s financial statements, management team, financial health and market sensitivity, as well as competition and the economy at large.
The firm has a long-term preference when it comes to the time horizon of its prospective investments. It also believes in passive investment management.
Dragoneer Investment Group Fees
As Dragoneer Investment Group is an investment fund manager, it earns compensation through the management fees that it charges each fund. These costs indirectly trickle down to fund investors, who have to pay their own fees as well.
All fee rates at Dragoneer are decided on a fund-to-fund basis. Therefore, there is no one-size-fits-all approach at the firm.
What to Watch Out For
Dragoneer Investment Group has no disclosures listed on its Form ADV.
In many cases, Dragoneer Investment Group has performance-based fee structures in which fees are paid based on the performance of investments relative to a benchmark. According the Dragoneer’s Form ADV, “Such entitlement to performance-based distributions or fees creates an incentive for us to take, and will frequently result in Dragoneer taking, risks in managing the Clients and Co-Investment Vehicles that we would not otherwise take in the absence of such arrangements.”
Despite the presence of these potential conflicts of interest, keep in mind that Dragoneer is still a fiduciary, meaning it is legally obligated to always make decisions in the best interest of clients.
Opening an Account With Dragoneer Investment Group
If you’re interested in working with Dragoneer Investment Group, you can reach out in two different ways. You can call the firm’s office at (415) 539-3105, or you can send an email to information@dragoneer.com.
All information is accurate as of the writing of this article.
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