Browsing: Other Issues in Private Investments

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

Other Issues in Private Investments

Liquidity: Running for the Exits

Aug 15th, 2019 | Filed under: Newly Added, The A.I. Industry, Risk management, Hedge Funds, Other Issues in Private Investments, Risk Management Strategies & Processes, Risk Management & Operations

Liquidity vanishes when you need it most. That isn’t an especially original observation. It’s like saying that the exit doors are always jammed precisely when you need a quick exit quickly. Amin Rajan gives us a forceful statement of this point inspired by the “current travails at Woodford Asset Management.”Read More


Four Lessons from the Sale of Refinitiv

Aug 12th, 2019 | Filed under: Newly Added, The A.I. Industry, Other Issues in Private Investments, Structured Products

Less than a year ago, Thomson Reuters sold a majority interest in its financial and risk product portfolio, a critical part of that corporate domain, to a consortium led by Blackstone, in a deal that valued the assets, now renamed “Refinitiv,” at $20 billion. In April of this year, thatRead More


Quantum Computing Will Mess Up all Expectations

Jul 11th, 2019 | Filed under: Newly Added, Algorithmic and high-frequency trading, The A.I. Industry, Technology, Other Issues in Private Investments, Business News, Private Investments, Risk Management & Operations

There are reports that Google is preparing an announcement of “quantum supremacy” for later this year. If true, this is the biggest tech story since the transistor replaced vacuum tubes. It could be a disruptive development for just about every business with an IT department. Among much else, quantum supremacyRead More


Private Equity and the Law in India

Jul 9th, 2019 | Filed under: Newly Added, Private Equity, The A.I. Industry, Debt Types of Private Equity, Equity Types of Private Equity, Other Issues in Private Investments, Private Investments

A forthcoming article in the University of Pennsylvania Journal of International Law discusses the investor control rights typically negotiated in the private equity context in India. The article, by Arjya B. Majumdar, an associate professor at Jindal Global Law School, begins with the quantity of assets under management by theRead More


Oil & Gas: Where is the Capital Flowing?

Jul 7th, 2019 | Filed under: Newly Added, Private Equity, Commodities, The A.I. Industry, Investing in Commodities, Equity Types of Private Equity, oil, Commodities, Other Issues in Private Investments, Private Investments

The last two years have seen record low levels of mergers and acquisitions activity in the oil and gas sector in the United States. There are other signs of lassitude in the field: a record low volume of PE deals, (more of that in a moment), and only six initialRead More


The Dangers and Attractions of Infrastructure Investing

Jul 4th, 2019 | Filed under: Newly Added, Infrastructure, The A.I. Industry, Institutional Investing, Natural Resources and Land, Other Issues in Private Investments, Operationally Intensive Real Assets, Institutional Asset Management, Real Assets, Other Topics in A.I.

An arm of Brookfield Asset Management, Brookfield Infrastructure, announced that it is leading a group of investors to buy Genesee & Wyoming for a cash payment of $112 per share, a premium of nearly 40% over the pre-announcement stock price. This is a big infrastructure play. G&W is a freightRead More


Hedge Funds, Agency Capitalism, and Poison Pills

Jun 9th, 2019 | Filed under: Newly Added, Private Equity, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Event-Driven Hedge Funds, Equity Types of Private Equity, Other Issues in Private Investments, Private Investments

A new paper in the Journal of Applied Corporate Finance looks at “agency capitalism” and its development in the United States during the past 15 to 20 years. The term “agency capitalism” refers in general to any system in which institutional investors dominate as shareholders of record for the votingRead More


Public to Private LBOs and Innovation

May 21st, 2019 | Filed under: Newly Added, Private Equity, The A.I. Industry, Debt Types of Private Equity, Regulatory Environment, Equity Types of Private Equity, Other Issues in Private Investments, Private Investments

A new study considers the proposition that indebtedness can reduce innovation. It offers support for the view that indebtedness in a particular context reduces patent flow. But whether patent flow should be considered a good surrogate for innovation remains open to question. An argument that has long been aimed atRead More


The ‘Vortex of Volatility’ and the Merger Market  

May 16th, 2019 | Filed under: Newly Added, Private Equity, The A.I. Industry, Equity Hedge Funds, Debt Types of Private Equity, Hedge Funds, Event-Driven Hedge Funds, Equity Types of Private Equity, Other Issues in Private Investments, Private Investments

Intralinks, the provider of inter-enterprise collaboration products that is perhaps best known for its Deal Flow Predictor, recently interviewed Paul Aversano, a managing director at the consultancy Alvarez & Marsal. Aversano leads A&M’s private equity services practice, and he is the global practice leader of the transaction advisory group. HeRead More


Canada’s Venture Capitalists: A Gender Gap

May 13th, 2019 | Filed under: Newly Added, The A.I. Industry, Venture capital, Other Issues in Private Investments, Private Investments

Female Funders, a program within the venture capital company Highline BETA, with offices in both Canada and the United States, has produced a new Women in Venture report, which works with data gathered from more than 300 VC firms and corporate venture arms in both countries “to try to paintRead More


‘There You Go Again’

May 6th, 2019 | Filed under: Newly Added, What about beta?, Private Equity, Debt Types of Private Equity, Hedge Funds, Equity Types of Private Equity, Other Issues in Private Investments, Alternative Investments in Context, Private Investments

By Bill Kelly, CEO, CAIA Association This now famous line was uttered by then citizen Ronald Reagan almost 40 years ago in a presidential debate with the incumbent Jimmy Carter. It was a simple and clever turn of a phrase acting as a counter-punch to Carter’s excoriation of Reagan’s priorRead More


State of the European Union: Alternative Lending

Apr 25th, 2019 | Filed under: Newly Added, The A.I. Industry, Debt Types of Private Equity, Hedge Funds, Other Issues in Private Investments, Private Investments

The state of alternative lending and pertinent regulation within the European Union is the topic of a new white paper co-authored by Allen & Overy, the multinational law firm, and the Alternative Credit Council (an affiliate of AIMA). The paper begins with the observation that over the last four yearsRead More


The Illiquidity Premium and the Market for Private Assets

Apr 14th, 2019 | Filed under: Newly Added, Real Estate, Private Equity, The A.I. Industry, Debt Types of Private Equity, Liquid and Fixed Income Real Estate, Asset allocation, Equity Types of Private Equity, Asset Allocation Models, Other Issues in Private Investments, Operationally Intensive Real Assets, Private Investments, Real Estate Equity Investments, Real Assets, Finance & Economics

The illiquidity premium is one of the most frequently discussed and hotly disputed subjects in financial economics. Speaking broadly, an investment is not a checking account. One generally cannot just “get the cash back” at a moment’s notice, by visiting some equivalent of an ATM. How long will it takeRead More


Dry, Drier, Driest 

Mar 11th, 2019 | Filed under: Newly Added, What about beta?, Other Issues in Private Investments, Private Investments

By Bill Kelly, CEO, CAIA Association When it comes to dryness there are degrees of gradation, especially when it comes to the most discriminating tastes amongst us. Whether we are talking martinis, snow, or our skin, dry doesn’t always mean dry. We slake, salve, or schuss our way through, alwaysRead More


Steps to Attain Sustainable Development Goals

Feb 19th, 2019 | Filed under: Newly Added, Social investing, The A.I. Industry, Institutional Investing, Socially responsible investing, Other Issues in Private Investments, Climate change, Institutional Asset Management, Private Investments, SRI and Clean Energy

Amber Fairbanks, a portfolio manager at Mirova, a division of Natixis, recently talked to Clarice Avery, a Natixis investment strategist on Asset TV about potential long-term investment opportunity in the ESG space. She described ESG as a way in which investors can benefit from long-term secular trends rather than tryingRead More


Top 5 Alpha Stories of 2018

Dec 30th, 2018 | Filed under: Newly Added, Private Equity, Hedge Fund Strategies, The A.I. Industry, Regulatory Environment, Hedge Funds, Event-Driven Hedge Funds, Equity Types of Private Equity, Emerging Alternative Investments, The Global Economy & Currencies, Digital currencies, Other Issues in Private Investments, Private Investments

Five stories stand out as the dominant stories for and about pursuers of alpha in the year just passed. There is nothing arbitrary about the list below. We admit, though, that the order in which we present them is arbitrary: that is, it is not a ranking, and it isRead More


Agtech: Comfort Zones and Value Chains

Dec 11th, 2018 | Filed under: Newly Added, Real Estate, Agriculture, The A.I. Industry, Investing in Commodities, Debt Types of Private Equity, Liquid and Fixed Income Real Estate, Venture capital, Farmland, Equity Types of Private Equity, Natural Resources and Land, Commodities, Other Issues in Private Investments, Private Investments, Real Estate Equity Investments, Real Assets

An agtech-focused venture firm has issued a report about global VC activity across agtech and its subsectors. The firm, Finistere Ventures, which describes itself as in the business of helping “ambitious founders transform food and agriculture,” collaborated with Pitchbook in preparing the review. Finistere looks specifically at: (a) macro trends,Read More


Jeff Diehl: The View from SuperReturn Japan 2018, Part II

Dec 6th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Debt Types of Private Equity, Venture capital, Equity Types of Private Equity, Other Issues in Private Investments, Alternative Investments in Context, Private Investments

On Dec. 6, in Tokyo, Japan, the SuperReturn Japan 2018 event concluded. CAIA was a sponsor of this event, which was billed as “the world’s gateway to Japanese private equity and venture capital.” This is the second part and conclusion of our interview with Jeff Diehl, managing director at AdamsRead More


Jeff Diehl: The View from SuperReturn Japan, Part I

Dec 4th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Debt Types of Private Equity, Venture capital, Equity Types of Private Equity, The Global Economy & Currencies, Other Issues in Private Investments, Economics, Private Investments, Frontier markets, Macroeconomics, Finance & Economics

On Wednesday, December 5, in Tokyo, Japan, the SuperReturn Japan 2018 event convenes. CAIA is a sponsor of this event. Jeff Diehl, managing partner at Adams Street Partners, a multi-national investment manager with more than $35 billion in assets under management, is attending. He will participate in a panel WednesdayRead More


Digitization of alternative investments: the rise of technology

Nov 20th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Venture capital, Technology, Operations, Hedge Funds, Other Issues in Private Investments, Private Investments, Risk Management & Operations

KPMG, the auditing giant based in the Netherlands, has put out a white paper on the “digitization mandate” in the alternative investment space.  It maintains that fund managers who “dawdle” in digitizing their business are acting foolishly, falling behind the expectations of their actual and potential investors. Consider fees. PreqinRead More


Cracking the Illiquidity Code

Sep 26th, 2018 | Filed under: Newly Added, Performance, Analytics & Metrics, Private Equity, The A.I. Industry, Benchmarking & Performance Attribution, Equity Types of Private Equity, Other Issues in Private Investments, Risk Metrics and Measurement, Private Investments

By Tom Keck, Partner & Head of Research; Lisa Larsson, Vice President, Research Researchers at StepStone Group, a global private markets firm, recently released a white paper that puts the illiquidity of private equity into perspective. A fund’s life they reckon is too coarse a measure; the picture comes into focusRead More


Intralinks/Global Fund Media Survey of LPs Shows Satisfaction

Sep 25th, 2018 | Filed under: Newly Added, Real Estate, Private Equity, The A.I. Industry, Debt Types of Private Equity, Liquid and Fixed Income Real Estate, Institutional Investing, Hedge Funds, Equity Types of Private Equity, High-net-worth investors, Other Issues in Private Investments, Endowments & Foundations, Institutional Asset Management, Private Investments, Real Estate Equity Investments, Family Offices, Real Assets, Allocating to A.I.

Intralinks has once again collaborated with Global Fund Media in a survey of limited partners on their satisfaction with recent results and on how they see global investment opportunities near-term. As to satisfaction: 18% of LPs say that their results from alternative investments have been better than they expected. ARead More


Pitchbook 2018 Report: Where are the unicorns?

Sep 4th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Industry Size & Managers, Debt Types of Private Equity, Venture capital, Angel investing, Other Issues in Private Investments, Private Investments

PitchBook has posted its 2018 VC Unicorn Report. The introduction explains the meaning of the term. (It has only been in use in its financial sense since 2013, so explanations may still be deemed necessary.) “Unicorn” refers to an entity upon which the private investment markets have bestowed a valuationRead More


HBS looks at 40 years of private equity performance

Sep 3rd, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Debt Types of Private Equity, Venture capital, Equity Types of Private Equity, Other Issues in Private Investments, Private Investments

In a new study by Harvard Business School scholars looks into the performance of LPs invested with private equity over four decades. In the paper, Investing Outside the Box, the scholars found that it is generally better to invest inside the box. Specifically, they found that the performance of alternativeRead More


Illuminating Gender Differences in Entrepreneurship

Aug 16th, 2018 | Filed under: Newly Added, The A.I. Industry, Debt Types of Private Equity, Venture capital, Equity Types of Private Equity, Angel investing, Other Issues in Private Investments, Private Investments

Illuminate Ventures, an early-stage high-tech VC firm, has posted a paper by its founder and managing partner, Cindy Padnos, on “gender differences in entrepreneurship.” The paper begins with the observation that nearly half of the Illuminate portfolio companies have a woman as a co-founder. This doesn’t mean of course thatRead More


The Problem With Unicorns

Jul 17th, 2018 | Filed under: Newly Added, Private Equity, Debt Types of Private Equity, Venture capital, Equity Types of Private Equity, Other Issues in Private Investments, Private Investments

A new book by the Wall Street Journal’s John Carreyrou, Bad Blood: Secrets and Lies in a Silicon Valley Startup, works as a compelling test case in how the hunger for the next “unicorn,” a hunger that has been a feature in alternative investing for years now, can go badlyRead More


Private Debt and Impact Investors

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

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: Newly Added, Emerging Alternative Investments, Digital currencies, Other Issues in Private Investments, Private Investments, Other Topics in A.I.

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

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, Socially responsible investing, Other Issues in Private Investments, SRI and Clean Energy, Other Topics in A.I.

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: Newly Added, Emerging Alternative Investments, 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: Newly Added, Currencies, Emerging Alternative Investments, The Global Economy & Currencies, Digital currencies, Other Issues in Private Investments, Private Investments, Other Topics in A.I.

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, Private Equity, Other Issues in Private Investments, 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: Newly Added, Equity Hedge Funds, Hedge Funds, 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: Newly Added, Microfinance, Emerging Alternative Investments, Other Issues in Private Investments, Private Investments, Other Topics in A.I.

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: Newly Added, Institutional Investing, Other Issues in Private Investments, Institutional Asset Management, Private Investments, Allocating to A.I.

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: Newly Added, Real Estate, Equity Types of Private Equity, Other Issues in Private Investments, Private Investments, Real Estate Equity Investments, Real Assets

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: Newly Added, Private Equity, Asset allocation, Asset Allocation Models, Other Issues in Private Investments, Private Investments, Allocating to A.I.

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: Newly Added, Private Equity, The A.I. Industry, Industry Size & Managers, Other Issues in Private Investments, Private Investments

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: Newly Added, Emerging Alternative Investments, Other Issues in Private Investments, Risk Management Strategies & Processes, Risk Management & Operations

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, Venture capital, Other Issues in Private Investments, Private Investments

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: Newly Added, Asset allocation, Asset Allocation Models, Other Issues in Private Investments, Private Investments, Allocating to A.I.

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: Newly Added, Hedge Funds, 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: Newly Added, Performance, Analytics & Metrics, Private Equity, Risk management, Benchmarking & Performance Attribution, Other Issues in Private Investments, Private Investments, 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