Browsing: Other Issues in Private Investments

Private Equity Liquid Alternatives
Management of Liquidity
Performance Measurement of Private Equity Funds

Other Issues in Private Investments

Private Debt and Impact Investors

May 20th, 2018 | Filed under: Newly Added, Other Issues in Private Investments, Other Topics in A.I., Private Investments, Social investing, SRI and Clean Energy

A new study by the Symbiotics and GIIN research teams looks at private debt impact funds (PDIFs); that is, “independent investment vehicles that allocate on average more than 85% of their portfolios to private debt” and that look to the environmental and/or social impact their allocations will have.   The goalRead More


The PE Lifecycle Can Be Audited by Blockchain

Mar 27th, 2018 | Filed under: Digital currencies, Emerging Alternative Investments, Newly Added, Other Issues in Private Investments, Other Topics in A.I., Private Investments

On March 19, Northern Trust announced that it has enhanced its blockchain technology for private equity to the point where it can be employed by auditors. The audit firm can have its own blockchain node, which will enable access to real-time fund data. Pete Cherecwich, who runs Corporate & InstitutionalRead More


Ceres Report Evaluates Value of Early-Stage Clean Energy

Feb 4th, 2018 | Filed under: Alternative energy, Commodities: Examples, Emerging Alternative Investments, Energy, Newly Added, Other Issues in Private Investments, Other Topics in A.I., Private Equity, Private Investments, Socially responsible investing, SRI and Clean Energy, Venture capital

A recent publication from Ceres, a nonprofit organization devoted to promoting sustainability as a goal in both investing and corporate governance, looks at the value that early-stage clean energy products offer venture capitalists. The publication is the work of a team of five “lead authors and key contributors,” including threeRead More


Principles, ESG, and Credit Risk

Jan 11th, 2018 | Filed under: Newly Added, Other Issues in Private Investments, Other Topics in A.I., Socially responsible investing, SRI and Clean Energy

The UN Principles for Responsible Investment (PRI), an initiative working to put into practice six principles on the environmental, social, and governance (ESG) aspects of investment decisions, in partnership with the UNEP Finance Initiative and the UN Global Compact, has issued a paper on the credit ratings agencies and theirRead More


The Transformation of the Global Reinsurance Industry

Dec 14th, 2017 | Filed under: Emerging Alternative Investments, Newly Added, Other Issues in Private Investments, Other Topics in A.I.

A new paper from Milliman, a consultant to the insurance and financial services industries, discusses the ongoing transformation in and of the global reinsurance industry that alternative investment has created. About 20 years ago, in the wake of Hurricane Andrew and the Northridge earthquake, catastrophe bonds caught on as aRead More


Deloitte on Initial Coins Offerings (ICOs) as IPOs

Dec 10th, 2017 | Filed under: Currencies, Digital currencies, Emerging Alternative Investments, Newly Added, Other Issues in Private Investments, Other Topics in A.I., Private Investments, The Global Economy & Currencies

An October 2017 white paper from Deloitte discusses the extent to which the offerings of tokens built upon blockchains have become the new IPOs of the crypto era. There are no binding rules about how to execute an initial coin offering (ICO). Nonetheless, there have been enough of these soRead More


Bain on Dry Powder and High Asset Prices

Dec 3rd, 2017 | Filed under: Newly Added, Other Issues in Private Investments, Private Equity, Private Investments

Bain & Co., a consultancy to the private equity industry, has issued its Global Private Equity Report 2017. One central theme of the report is that prices of desired assets aren’t merely high, they are “structurally high,” and thus likely to remain so. They are high because there is aRead More


SUNY Scholars: Hedge Funds are Smart about PIPES

Sep 21st, 2017 | Filed under: Equity Hedge Funds, Hedge Funds, Newly Added, Other Issues in Private Investments, Private Investments

Two scholars affiliated with the State University of New York at Albany recently looked into the roles of hedge funds in corporate misreporting. Specifically, they used a database of PIPE issuers. The resulting paper, by Na Dai (Associate Professor of Finance at SUNY) and Alfred Zhu Liu (Assistant Professor ofRead More


Marketplace Lending: Just Because I’m Disruptive Doesn’t Mean We Can’t Be Friends!

May 23rd, 2017 | Filed under: Emerging Alternative Investments, Microfinance, Newly Added, Other Issues in Private Investments, Other Topics in A.I., Private Investments

Mark Shore, chief research officer of Shore Capital Research, and an adjunct professor at DePaul University, has prepared an “overview” of marketplace lending for institutional investors and wealth managers. The practice under discussion is also known as peer-to-peer, or even in these character economizing days as P2P, lending. Shore explainsRead More


Private Equity Alpha and a Disappearing Act

Mar 16th, 2017 | Filed under: Newly Added, Other Issues in Private Investments, Private Investments

Kyle Welch, an assistant professor of accountancy at George Washington University School of Business, has issued an unusual challenge to two of the standard claims made on behalf of the private equity industry in a recent paper. Welch’s paper claims that “the alpha associated with private equity firms disappears afterRead More


DC Sponsors and PE General Partners: A Good Marriage?

Feb 7th, 2017 | Filed under: Allocating to A.I., Institutional Asset Management, Institutional Investing, Newly Added, Other Issues in Private Investments, Private Investments

The British Private Equity & Venture Capital Association, in a new paper, contends that private equity has a valuable part to play in the portfolios of defined contribution schemes, for the simple reason that the PE world offers high returns in an era of low interest rates. To make thatRead More


EY on Real Estate Private Equity Trends

Feb 5th, 2017 | Filed under: Equity Types of Private Equity, Newly Added, Other Issues in Private Investments, Private Investments, Real Assets, Real Estate, Real Estate Equity Investments

The global real estate division of financial consultancy Ernst & Young recently published a report on the private equity outlook in the real estate space. As the head of the division, Mark Grinis, says in an introduction, the premise of the report is that success in this space requires managerialRead More


Cash Management Strategies for Private Equity

Jan 10th, 2017 | Filed under: Allocating to A.I., Asset allocation, Asset Allocation Models, Newly Added, Other Issues in Private Investments, Private Equity, Private Investments

Private equity investors have a distinctive cash management question: what do they do with the money that has yet to be drawn or called? Keeping cash in pillow cases is, here as always, less than the optimal solution. One of the defining features of a PE firm is that anRead More


PE Study: Managerial Turnover is a Good Thing for Investors

Dec 26th, 2016 | Filed under: Industry Size & Managers, Newly Added, Other Issues in Private Investments, Private Equity, Private Investments, The A.I. Industry

A recent study by Franceso Cornelli and two associates indicates that there is a positive relationship, in the private equity industry, between managerial turnover and fund performance. Cornelli is Professor of Finance, London Business School, and a fellow at the Center for Economic Policy Research.  The other authors are: ElenaRead More


Ammar on the Implied Volatility Smile

Dec 22nd, 2016 | Filed under: Emerging Alternative Investments, Newly Added, Other Issues in Private Investments, Risk Management & Operations, Risk Management Strategies & Processes

In a new working paper, a scholar at the School of Finance, at the University of St Gallen, Switzerland,   Semir Ben Ammar, has analyzed the relationship between catastrophe risk and the “implied volatility smile” in stock options.  Along the way, he has proposed what may be a novel type ofRead More


Local and Global VC Need to Work Together for Best Results

Nov 27th, 2016 | Filed under: Newly Added, Other Issues in Private Investments, Private Investments, Venture capital

Thomas J. Chemmanur of Boston College, Carroll School of Management, and two other scholars looked into the issue whether local venture capitalists “play well together” with international VCs, and vice versa. The resulting paper, in the latest issue of the Journal of Business Venturing, suggest that entrepreneurs benefit by bringingRead More


PE Buyout Funds: Finding or Building a Proxy

Nov 17th, 2016 | Filed under: Allocating to A.I., Asset allocation, Asset Allocation Models, Newly Added, Other Issues in Private Investments, Private Investments

Alexandre Coupe, associate director, Pacific  Alternative Asset Management Company, head of PAAMCO’s asset allocation research, and formerly of Green Street Advisors, has written a fascinating review of private equity funds. She looks at what proxies work (and which don’t work) in assisting portfolio managers who have to make asset allocationRead More


Alpha From the Non-Bank Lending Space

Sep 25th, 2016 | Filed under: Hedge Funds, Newly Added, Other Issues in Private Investments, Private Investments

A new report, Financing the Economy 2016, looks at “the role of alternative asset managers in the non-bank lending environment,” addressing such questions as the likely impact of an exit of the United Kingdom from the European Union (a “Brexit,”) upon Europe-focused direct lending vehicles. The paper is a jointRead More


Best Practices for Private Equity Sponsors in an Age of Increasing Scrutiny

May 23rd, 2016 | Filed under: Benchmarking & Performance Attribution, Newly Added, Other Issues in Private Investments, Performance, Analytics & Metrics, Private Equity, Private Investments, Risk management, Risk Management Strategies & Processes

By John Czapla, Parag Patel and Shane Newell, Valuation Research Corporation As the demand for transparency rises for private equity and hedge funds, the spotlight is increasingly focusing on valuation practices. There are an important number of reasons why the valuation process has become important, and they are essential forRead More