Browsing: Private Investments

Private Investments

Avoiding Over-Allocation to Alternative Investments

Nov 6th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Institutional Investing, Risk management, Asset allocation, Hedge Funds, Asset Allocation Models, Risk Metrics and Measurement, Institutional Asset Management, Private Investments, Risk Management Strategies & Processes

A new white paper from New York Life looks at the role of alternatives in portfolio construction and argues that usual risk-return based approaches can underestimate risk and lead to over-allocation to the alternatives. The paper, by Amit Soni, an NYL portfolio manager, proposes a new method “to quantify performanceRead More


A Preqin Prequel? 

Nov 5th, 2018 | Filed under: Newly Added, What about beta?, The A.I. Industry, Industry Size & Managers, Private Investments, Real Assets, Allocating to A.I.

By Bill Kelly, CEO, CAIA Association In the world of cinema, by most accounts, it is The Godfather Part II that holds the top spot for best movie prequel. Interestingly, by design and title, it is also a sequel. Sequels at the box office are often panned but this production wasRead More


Volatility & Creative Destruction: Some Pieces of the Larger Puzzle

Nov 4th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Hedge Funds, Private Investments

The President’s Letter at the start of the latest Investment Quarterly from Neuberger Berman, the investment management spin-off from the late Lehman Brothers, looks at US stock market volatility through October, and fits it into the broader business-cycle picture. President (and CIO) Joseph Amato observes that optimists will look atRead More


Women-owned Businesses: Over a Threshold

Oct 2nd, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Venture capital, Angel investing, Private Investments

In a new report on the condition of women-owned businesses, part of an annual ongoing examination of business trends by American Express, researchers first take a big picture view (1972 to the present) and then do a swoop-down into the details of 2018.   The conclusion of the study isRead 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


(IRR)ational Aggregation

Sep 10th, 2018 | Filed under: Newly Added, What about beta?, Real Estate, Private Equity, Debt Types of Private Equity, Equity Types of Private Equity, Private Investments, Real Estate Equity Investments

By Bill Kelly, CEO, CAIA Association Many of us have had the experience of buying a home and often turn to the bank to provide some level of secured funding for that purchase. Banks, of course, require documentary evidence for the value of their collateral which, invariably, results in a market-based appraisal process resultingRead 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


Making Sense of Private Credit Funds

Aug 26th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Industry Size & Managers, Debt Types of Private Equity, Asset Managers, Private Investments

A new study takes what is called a “first look” at the aggregate performance of private credit funds. Using data going back to 2004, the authors (two of whom are affiliated with Adams Street Partners) determine that private credit funds “have performed about as well, or better than, leveraged-loan, high-yield,Read 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


Agtech Investment and the Future of Food

Aug 14th, 2018 | Filed under: Newly Added, Private Equity, Agriculture, The A.I. Industry, Venture capital, Farmland, Equity Types of Private Equity, Natural Resources and Land, Angel investing, Private Investments, Real Assets

Finistere Ventures, a venture capital firm that describes itself as in the business of helping “ambitious founders transform food and agriculture,” has teamed up with Pitchbook to produce a dataset that would enable “clear insights into financing activity and metrics in the agtech sector.” The result was the Agtech InvestmentRead More


European Private Equity Activity Increases in Q218

Aug 7th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Industry Size & Managers, Equity Types of Private Equity, Private Investments

Pitchbook has a new report out about private equity activity in Europe. It indicates that, despite a slow start to the year, PE deal activity picked up notably in the second quarter. Across the continent there were 804 deals 2Q with a total valuation of  €88.5 billion. Deals above the Read More


Private (In)equity 

Jul 30th, 2018 | Filed under: Newly Added, What about beta?, Private Equity, The A.I. Industry, Equity Types of Private Equity, Private Investments

By Bill Kelly Private equity is quite simply capital not listed on a public exchange (props to Investopedia). This is certainly an apt description but as this asset class moves toward greater maturity, corresponding levels of responsibility and transparency must be ramped up too. Uninvested capital has reached dizzying heights which can only mean (on average) higher entry multiples, downward pressure on returns, lessRead More


Thoughts in Advance of the Chicago AAAIM Event

Jul 24th, 2018 | Filed under: Newly Added, Private Equity, Debt Types of Private Equity, Venture capital, Equity Types of Private Equity, Angel investing, Private Investments

The Association of Asian American Investment Managers holds its Chicago Regional event on Thursday, July 26 at the offices of law firm Sidley Austin LLP, One South Dearborn, beginning at 3 and continuing until 7. AAAIM confidently proclaims that its line-up of panelists is a collection of “rock stars.” AmongRead 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


What has private equity done for state pension funds lately?

Jun 14th, 2018 | Filed under: Newly Added, Private Equity, Debt Types of Private Equity, Equity Types of Private Equity, Institutional Asset Management, Private Investments, Allocating to A.I.

Los Angeles-based Cliffwater LLC has recently updated a report it prepared a year ago on how state pension systems have fared by way of their investments in private equity. The report as updated finds that PE created on average a 10.7% annualized return across 21 state pensions over its 16-yearRead More


Africa Still Rising (but Patience May Be Required)

Jun 12th, 2018 | Filed under: Newly Added, Private Equity, Emerging Alternative Investments, The Global Economy & Currencies, High-net-worth investors, Emerging markets, Private Investments, Other Topics in A.I.

The Emerging Markets Private Equity Association, in a new report, suggests that the “Africa Rising” narrative of a few years ago is behind us. Africa is seen still as having enormous potential. But the report also says, “the commodity downturn of the last several years has had a severe impactRead 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 VC and PE Markets in Canada

Apr 1st, 2018 | Filed under: Newly Added, Private Equity, Venture capital, Equity Types of Private Equity, Private Investments

The Canadian Venture Capital and Private Equity Association (CVCA) has posted what it calls an “overview” of the VC and PE Markets in that country in 2017. It reports growth in both of those markets, although growth at distinct velocities. The report tells us that, on the VC side, CanadaRead 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


Central Europe as seen by private equity managers

Mar 20th, 2018 | Filed under: Newly Added, Private Equity, Private Investments

Deloitte has recently posted the results of its survey of how private equity managers see central Europe. A very concise summary of the findings of the survey is this: the PE industry expects that it will be buying CE assets in the coming months, and that it will be borrowingRead More


Preqin on the PE Outlook

Mar 8th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Equity Types of Private Equity, Private Investments

Preqin has issued a report on the near term outlook for private equity based on a recent (November 2017) survey of more than 350 PE firms around the globe. Asked what is the biggest challenge facing them in the coming months, the most common response was: high company valuations. TheRead More


PE Funds and the Causal Arrow

Feb 18th, 2018 | Filed under: Newly Added, Debt Types of Private Equity, Equity Types of Private Equity, Private Investments

A new report published by the Copenhagen Business School looks into the consequence of private equity investment on an industry-by-industry basis. The authors find that “industries where private equity funds invest grow more quickly [than others] in terms of total production and employment, and appear less exposed to aggregate shocks.”Read More


PE and VC Opportunities in 21st Century India

Feb 13th, 2018 | Filed under: Newly Added, Private Equity, Currencies, Venture capital, Equity Types of Private Equity, The Global Economy & Currencies, Private Investments, Finance & Economics

ARA Law, a firm based in Mumbai and Bangalore, India, has issued a paper on private equity and venture capital in that country. In a foreword, firm founder Rajesh N. Begur observes that there is a positive dynamic now at work in India’s economy, one that in his view “canRead 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


Stockholder Inspection Rights Survive Challenge in Delaware

Jan 16th, 2018 | Filed under: Newly Added, Private Equity, The A.I. Industry, Regulatory Environment, Equity Types of Private Equity, Private Investments

On December 29, 2017, the last business day of the expiring year, the Delaware Chancery Court, in a memorandum of opinion by Vice Chancellor Slights, upheld stockholders’ statutory books-and-records inspection rights against a defendant corporation that sought to invoke and considerably to widen the scope of the Delaware Supreme Court’sRead 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


Blackstone Looks at the Secondary Private Equity Market

Dec 19th, 2017 | Filed under: Newly Added, Private Equity, Private Investments

An October paper put out by Strategic Partners Fund Solutions, of Blackstone, argues that (despite risks and drawbacks) investing in the secondary private equity market  can still be a smart play, offering “accelerated returns with lower volatility, lower loss rates, and greater downside protection” than the primary market. The secondaryRead 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


Selecting an Optimal Private Equity Fee Validation Methodology

Nov 20th, 2017 | Filed under: Newly Added, Private Equity, Private Investments

By Alex Tarantino These are good times to be a private equity fund investor.  Returns have been strong with distributions on the rise, both in the U.S. and Europe. Limited partners, for their part, have voted with their wallets that the asset class will continue to outperform. Indeed, fundraising continuesRead More


Due Diligence Requires Deep Dives into Data

Nov 7th, 2017 | Filed under: Newly Added, Due Diligence Process, Risk Metrics and Measurement, Private Investments, Risk Management & Operations

The data and analysis provider eVestment has issued a new white paper on “enhancing private equity manager selection with deeper data.” PE funds below the top quartile have not materially outperformed the public markets as a matter of history. So for an institutional investor, earning alpha is in large measureRead More


Private Credit Industry: Supply and Demand

Oct 15th, 2017 | Filed under: Newly Added, Debt Types of Private Equity, Private Investments

The Alternative Credit Council, an affiliate of the Alternative Investment Management Association, has put out a paper on the present state of the private credit industry, considering both the demand (from borrowers) for its services and the supply (from investors) of capital to lend. In preparing this paper, the ACCRead 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


Venture Capital Top 100 List(s): GP and LP

Jun 18th, 2017 | Filed under: Newly Added, Private Equity, Venture capital, Equity Types of Private Equity, Private Investments

Preqin has named its top 100 Venture Capital firms, ordered by the amount of capital each firm has raised in the last 10 years. The top 10, with their headquarters city, are as follows: Tiger Global Management, New York New Enterprise Associates, Menlo Park Sequoia Capital, Menlo Park DST Global,Read More


New Zealand PE and VC Activity on the rise

Jun 6th, 2017 | Filed under: Newly Added, Private Equity, Venture capital, Equity Types of Private Equity, Private Investments

An increase in total buy-out investments proved a big factor in the growth through 2016 of the private equity and venture capital market in New Zealand. A new report looks at this growth and concludes that fund-raising activity there has reached a milestone, hitting again a levels not seen sinceRead 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


Risk Management Isn’t Just Fund Selection

Apr 27th, 2017 | Filed under: Newly Added, Private Equity, Due Diligence Process, Private Investments, Risk Management & Operations

New Strategies for Risk Management in Private Equity, a new book from Private Equity International, is an anthology of papers on the titular subject. It is edited by Dr. Ivan Herger to offer investors in PE new perspectives on the field. Herger, a managing director at Capital Dynamics, has aRead More


How Does the Private Debt Fund Industry Grow?

Mar 30th, 2017 | Filed under: Newly Added, Debt Types of Private Equity, Private Investments

Preqin has issued a new report on global private debt. It begins with the observation that assets under management in the private debt industry (defined as the uncalled capital commitments plus the unrealized value of portfolio assets) have quadrupled in the last ten years, reaching $595 billion as of theRead 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


Staying Private: A Contrary Push or a Weakening Pull?

Mar 12th, 2017 | Filed under: Newly Added, Private Equity, Venture capital, Private Investments

The number of public companies listed on U.S. exchanges peaked in 1996. Due to mergers on the one hand and de-listings on the other, factors far offsetting new initial public offerings, this number has fallen drastically since then, to less than half of peak. Part of the reason for thisRead More


6 Thoughts About the Alternative Credit Market

Mar 9th, 2017 | Filed under: Newly Added, Debt Types of Private Equity, Private Investments

BNY Mellon has put out a new white paper about the alternative credit market, that is, about debt funds and the space where they dwell. The paper looks at six points: macro background; investor demand; supply-side response; regulatory context; managerial difficulties; and the role of service providers. This precis willRead 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


Funds of Funds and the Task of Financial Intermediation

Jan 12th, 2017 | Filed under: Newly Added, CAPM / Alpha Theory, Financial Economics Theory, Venture capital, Private Investments, Finance & Economics

Are funds of funds a valuable form of intermediation? Robert Harris, of the University of Virginia, Darden School of Business, and three other distinguished scholars looked at this question in a Darden Business School Working Paper, and they decided that, at least with regard specifically to the role of FOFsRead 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