OverviewInvestment  FrameworkSources of AdvantagePortfolio Construction

Blackfield Investment Strategy

Active Capital Allocation Across Public and Private Markets

Overview

Blackfield serves as investment manager of Blackfield Core LP (BCORE), a privately offered investment partnership that embodies the firm's investment philosophy and approach to portfolio construction.

The firm's investment philosophy centers on active capital allocation, disciplined portfolio construction, and identifying structural alpha opportunities across private and public markets.

We seek returns from multiple independent sources of alpha, with particular emphasis on investment structures and terms that can create return advantages independent of underlying asset appreciation.

Network diagram illustrating private markets alongside public markets
PRIVATE MARKETS PUBLIC MARKETS

Investment Framework

Active Allocator,
Not Collector

Most private market portfolios are built by selecting managers and assembling them into a portfolio. Blackfield starts with portfolio construction, determining the exposures, return drivers, and risks we want in the portfolio, then selects investments based on the role they play within it. We actively allocate across asset classes, managers, structures, and individual investments as relative opportunities evolve.

Our aim is not to maximize the returns of individual investments. It is to maximize the probability of achieving exceptional long-term outcomes for the portfolio.

Four Return Engines

Blackfield seeks to generate returns from multiple independent sources of alpha, each evaluated and sized for the role it plays within the broader portfolio.

01

Asset Alpha

Investing in attractive underlying assets

02

Manager Alpha

Selecting high-quality managers

03

Structural Alpha

Capturing advantages embedded in fund structures

04

Allocation Alpha

Reallocating capital as opportunity sets evolve

Portfolio Returns

Compounding from several independent sources rather than one

Sources of Advantage

ASSET ALPHA

Experience Across Markets

Blackfield seeks Asset Alpha by identifying attractive underlying investments across asset classes and markets.

Our investment perspective reflects more than two decades of institutional experience across public and private equity and credit, complemented by firsthand operating and restructuring experience across multiple market cycles.

This breadth informs how we evaluate underlying businesses, assets, and opportunities across public and private markets.

01

Public Equity

02

Private Equity

03

Public Credit

04

Private Credit

05

Infrastructure

MANAGER ALPHA

Selectivity Over Manager Risk

Blackfield generally favors established private market managers with deep investment teams, institutional infrastructure, and investment experience across multiple market cycles.

We seek to be highly selective when accepting manager risk, particularly when compelling opportunities are available through managers with decades of experience navigating different macroeconomic environments and periods of severe market stress.

Deep Investment Teams

Sector and regional specialists rather than a single lead decision maker.

Institutional Infrastructure

Risk, valuation, financing, and reporting functions built for scale.

Experience Through Drawdowns

Decades of investing across multiple cycles and major market dislocations.

WHY EVERGREEN STRUCTURES MATTER

Flexibility Through Cycles

Private market investing has traditionally been dominated by long-dated drawdown funds, where capital is largely committed for the life of the fund with limited ability to rebalance.

Blackfield generally favors structures that provide greater flexibility and periodic liquidity, allowing us to combine long-term strategic investing with the capability to tactically rebalance the portfolio as opportunities arise through cycles.

Drawdown Structure

Capital committed to a predetermined strategy

Capital returned as investments are realized

Limited investor liquidity

Evergreen Structure

Capital allocated to the current opportunity set

Capital can be recycled into new opportunities

Periodic liquidity can enable portfolio reallocation

ALLOCATION ALPHA

Exposure Moves

Blackfield's strategy is designed to evolve as relative opportunities change. It is not intended to maintain a fixed allocation over time.

Allocation Alpha comes from actively changing portfolio exposures as relative opportunities arise, including adding, reducing, and replacing exposures across asset classes and strategies.

ILLUSTRATIVE ONLY · RING SIZE SUGGESTS RELATIVE EXPOSURE · NOT A REPRESENTATION OF ANY ACTUAL, HISTORICAL, OR TARGET ALLOCATION

STRUCTURAL ALPHA

Embedded Advantages

Blackfield seeks return advantages created by investment structures and terms that can be independent of underlying asset appreciation.

+
Secondary Strategies
that earn a spread for providing liquidity
+
Appreciated Warehoused Assets
contributed to new funds at cost
+
Early Investor Economics
with favorable terms and incentives
+
Early Evergreen Secondary Fund Exposure
where growth and scaling of the vehicle may enhance early investor performance

Portfolio Construction

Diversify the Drivers

Blackfield constructs portfolios across complementary public and private market strategies, allocating capital based on relative opportunity, risk, liquidity, tax characteristics, and each investment’s role within the broader portfolio.

Traditional diversification focuses on asset classes. We seek diversification not only across investments, managers, and asset classes, but across the sources of return themselves.

The objective is to avoid reliance on any single source of return.

MAPPED TO THE FOUR RETURN ENGINES
01

Asset Alpha

Asset appreciation

02

Manager Alpha

Manager selection

03

Structural Alpha

Secondary Strategies

Appreciated warehoused assets

Early investor economics

Early evergreen secondary fund exposure

04

Allocation Alpha

Active capital allocation

IMPLEMENTATION PROFILE AND LIQUIDITY

A Balanced Design

Blackfield intends to maintain a fluid mix of exposures across asset classes, strategies, and liquidity profiles to balance tactical opportunities, long-term after-tax compounding, and investor flexibility.

Private Equity
Long-term wealth creation and exposure to innovation
Real Assets
Income, tax efficiency, diversification, and inflation sensitivity
Private Credit
Income, diversified collateral, and capital preservation
Opportunistic Strategies
Market dislocations and differentiated return opportunities
MIX
Secondaries
Primaries
Co-investments
MEASURED LIQUIDITY
Quarterly liquidity
Semiannual liquidity
Quarterly liquidity, 1 year lock
Quarterly liquidity, 2 year lock
NOTE ON LIQUIDITY

Liquidity characteristics vary across investments and portfolios. Blackfield considers these differences when constructing portfolios and evaluating opportunities to reallocate capital. Actual liquidity depends on the terms of the underlying investments and any applicable account or fund restrictions, including redemption windows, lockups, withdrawal limits, and gates. Liquidity is not guaranteed.

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