Fran Kinniry is bringing investors access to an area of the market that's long been sequestered: private equity.
"Our core purpose is to help all investors," he says. "We see a very strong investment case. However, that investment case, being very strong, has been limited to the top wealth pools."
Kinniry's goal is simple: provide private-equity access and "world-class investment solutions" to improve diversification and performance to those investors not in the top 5% to 10% of wealth pools. Vanguard has partnered with the private-equity investment firm HarbourVest to carry out this initiative.
As the public investable universe continues to shrink and forward-looking returns dwindle, investors will now have access to unique companies that may offer differentiated, market-trouncing returns.
The move into private equity fits hand-in-glove with Vanguard's emphasis on financial advice and goals-based investing — things meant to quell nefarious, self-inflicted investor missteps by focusing on the long term.