Browsing: Private Equity

Private Equity

The Evolution of Private Equity Fund Value

Jun 17th, 2021 | Filed under: Access to Alternatives, Featured Post, Private Equity, Manager Selection, Newly Added

By Jian Zhang, CFA, Partner, Adams Street Partners Private equity represents an important component of the alternatives allocation for an institutional portfolio. This is primarily due to the fact that private equity is complementary to traditional asset classes and has proven to be accretive to overall returns while offering important diversificationRead More


Identifying Red Flags in Private Markets Due Diligence

Jun 8th, 2021 | Filed under: Featured Post, Private Equity, Manager Selection, Newly Added

 By Jamie Ebersole, CFA, CFP, CEO, Ebersole Financial, LLC There is no shortage of information out there about due diligence on private assets and managers of private funds. When I started in the business many years ago, I remember receiving a research paper on the topic from Goldman Sachs, whichRead More


Performance Persistence: Is It There, and Can It Be Exploited?

Jun 3rd, 2021 | Filed under: Featured Post, Private Equity, Manager Selection, Newly Added, Hedge Funds

By Hossein Kazemi, PhD, CFA, Isenberg School of Management and CAIA Association By the end of 2020, only 0.72% of all active US mutual funds had finished in the top quartile every year since 2016. Among mutual funds, mid-cap funds displayed the highest degree of persistence: 1.47% of them haveRead More


Will the 2020 SPAC IPOs Boom Continue?

Jun 2nd, 2021 | Filed under: Featured Post, Private Equity, Newly Added, Hedge Funds

By Wu Guowei Jack, CFA, CAIA, Director, Content APAC, CAIA Association  2020 was a boom year for Special Purpose Acquisition Company (SPAC) listings. An annual total of US$ 83 billion was raised, accounting for 46% of total US IPO proceeds and 55% of the total number of US IPOs. The momentumRead More


With Tokenization, the Time Has Come for Evergreen Funds

May 27th, 2021 | Filed under: Featured Post, Private Equity, Newly Added

By Richard Johnson, CEO, Texture Capital This post was originally published on Texture Capital’s website on May 5, 2021. Evergreen fund structures for venture capital offer many advantages over more traditional fixed-term structures. As these funds are open ended and have no termination date, they give fund managers more flexibilityRead More


ESG and the Private Markets

May 16th, 2021 | Filed under: State of the Industry, Featured Post, Private Equity, Newly Added, ESG

This post is an excerpt from the recently published PitchBook Analyst Note: ESG and the Private Markets, written by Hilary Wiek, CFA, CAIA, Lead Analyst, Fund Strategies & Performance. Click here to read the full note. What and how to report Once an investor—be it an LP or a GP—comesRead More


Co-Investments: A Sprint or a Marathon?

May 4th, 2021 | Filed under: State of the Industry, Featured Post, Private Equity, Newly Added

By Wu Guowei Jack, CFA, Director, Content APAC, CAIA Association The Continued Growth of Private Equity Global assets under management (AUM) in private equity (PE) and venture capital continue to grow despite the economic slowdown from the COVID-19 pandemic and a slight drop in 2020 fundraising. Preqin reported that PERead More


What the OCC’s Letter Means for PASTOs

Apr 29th, 2021 | Filed under: Emerging Asset Classes, State of the Industry, Featured Post, Private Equity, Manager Selection, Newly Added

By Lydia Ofori, CFA, CAIA, Founder and CEO, Hunter Labs Technologies In a recent paper, my colleagues and I discussed the creation of private asset security token offerings (PASTOs), which are essentially frictionless representations of investor interests in private asset portfolios in token form. Such a phenomenon is possible thanksRead More


To SPAC or Not To SPAC

Apr 14th, 2021 | Filed under: Featured Post, Private Equity, Newly Added

A Guide to SPACs for Arbitrageurs, Shareholders, and Private Companies By Keith Black, PhD, CFA, CAIA, Managing Director of Content Strategy, CAIA Association There has been tremendous activity in the SPAC market in 2020 and 2021, a time when more than half of the IPO activity has been attributable to theRead More


Exploring the Potential of Tokenisation in Alternative Investments

Mar 18th, 2021 | Filed under: Emerging Asset Classes, State of the Industry, Access to Alternatives, Featured Post, Real Estate, Private Equity, Infrastructure, Newly Added

By Joanne Murphy, Managing Director, APAC, CAIA Association and Wu Guowei Jack, CFA, Director, Content APAC, CAIA Association Retail investors increasingly understand the risk profile associated with alternative investments and are interested in actively allocating to them. They are also more willing to lock up their capital for the longerRead More


Do Private Equity Alternative Vehicles Benefit Some LPs More Than Others?

Feb 25th, 2021 | Filed under: Featured Post, Private Equity, Newly Added

By Josh Lerner, Jacob H. Schiff Professor of Investment Banking at the Harvard Business School This post summarizes the following study, which is forthcoming in the Journal of Financial Economics: Lerner, Josh and Mao, Jason and Schoar, Antoinette and Zhang, Nan R., Investing Outside the Box: Evidence from Alternative Vehicles in PrivateRead More


Why Lagging Pensions Should Consider Private Debt

Feb 23rd, 2021 | Filed under: State of the Industry, Featured Post, Private Equity, Private Debt, Newly Added

By Zack Ellison, CFA, CAIA and Guy Pinkman, CPPT Watch our recent webcast series co-hosted with the CAIA SoCAL Chapter to hear more from these authors. Watch the replay of Session 1, featuring Guy Pinkman, or register to join Session 2, featuring Zack Ellison, on March 2 at 9:00 amRead More


Private Equity and the Leverage Myth

Jan 6th, 2021 | Filed under: Featured Post, Private Equity, Private Debt, Newly Added, Asset Allocation

By William Kinlaw, CFA This article offers commentary and highlights from “Private Equity and the Leverage Myth” by Megan Czasonis, William Kinlaw, Mark Kritzman and David Turkington in The Journal of Alternative Investments. You can read the full paper here.  The private equity market is on an astonishing growth trajectory.Read More


What About Beta? | Finally, Hindsight Is 2020

Jan 3rd, 2021 | Filed under: State of the Industry, Private Equity, Newly Added, Asset Allocation, What About Beta?, Hedge Funds

By Aaron Filbeck, CFA, CAIA, CIPM, FDP – Director, Global Content Development at CAIA Association Well…we made it. This has been the longest decade year of our lives. Whether it’s been personal or professional circumstances, or simply having been an investor in this market, none of us could escape theRead More


ESG and Its Growing Influence in the Timberland Investment Sector

Dec 17th, 2020 | Filed under: Featured Post, Private Equity, Newly Added, ESG, Commodities & Natural Resources

By Chung-Hong Fu, Managing Director, Research Timberland Investment Resources, LLC As interest in Environmental, Social and Governance (ESG) issues increases, investors and investment managers are working to define and refine what ESG means and what ESG engagement looks like in the context of their portfolios and the asset classes inRead More


Strategic Portfolio Construction with Private Equity

Dec 8th, 2020 | Filed under: Featured Post, Private Equity, Newly Added, Asset Allocation

By Giulio Renzi-Ricci, Senior Investment Strategist, Vanguard  Investor interest in private equity has been rising over the last two decades. Today private equity represents a growing opportunity for multiasset portfolios, offering the potential to significantly outperform public investments. In a new research paper, we examine the role private equity canRead More


What Price Private Equity Returns?

Dec 2nd, 2020 | Filed under: Featured Post, Private Equity, Newly Added

What is the expected return on private equity? Not at the deal level, but in terms of the return on the underlyings for which actual market prices are not available? That is a tricky empirical question because, after all since we know that actual market prices are not available! AfterRead More


What Is the Future of Alternatives?

Nov 17th, 2020 | Filed under: State of the Industry, Featured Post, Private Equity, Newly Added, Asset Allocation, ESG, Hedge Funds

By Grant Murgatroyd, senior writer EMEA at Preqin Preqin predicts that alternative assets under management will rise to $17.2 trillion in 2025. We believe the COVID-19 induced slowdown in 2020 will be temporary and lead to a larger, more efficient, and more sustainable industry. Assets under management (AUM) in alternativesRead More


Art Investing: Recession and Volatility-Related Case Studies

Nov 2nd, 2020 | Filed under: Featured Post, Private Equity, Newly Added, Asset Allocation

By Arthena’s Art Market Research Team The effects of recessions on fine art prices are, without a doubt, the topic most-opined-about in our industry’s relatively small financial news echo chamber. Any hint of a market slowdown tends to flood our inboxes with an unyielding torrent of analysis, evidenced by theRead More


Why Alternative Investment Operations Still Matter

Oct 20th, 2020 | Filed under: Featured Post, Private Equity, Manager Selection, Newly Added, Risk Management, Hedge Funds

By Jason Scharfman Esq., CFE, CRISC, CAMS, CAIA Managing Partner, Corgentum Consulting As an operational due diligence (ODD) professional who performs ODD reviews of alternative investment managers on behalf of institutional investors and family offices, I have noticed a recent increase not only in the number of ODD reviews investorsRead More


It Isn’t The Strategy: It’s the Execution that Gets You to Alpha

Oct 18th, 2020 | Filed under: Featured Post, Private Equity, Newly Added

A recent study of private equity, available as a working paper by the European Bank for Reconstruction and Development, seeks to open what the authors see as the “black box of value creation” in private equity. What they find inside the box is this: “[It] is not the ex-ante selectionRead More


Three Sources of Alpha: A Call for Small Manager Investment

Oct 13th, 2020 | Filed under: Featured Post, Private Equity, Newly Added, Asset Allocation, Risk Management, Hedge Funds, Commodities & Natural Resources

By Karl Rogers, ACE Capital Investments I recently finished a multi-strategy fund of hedge funds build for an institution where I focused on three sources of alpha: small manager, equities and commodities. Small Manager Alpha Given that “small” managers have been found to outperform their larger peers[1], why do manyRead More


Innovation Isn’t an Accident

Sep 30th, 2020 | Filed under: Featured Post, Private Equity, Newly Added

By Sloane Ortel How does innovation happen? For many people in the investment community that answer is sort of fuzzy. We might think it just happens, which is effectively the same as believing inventions are delivered by storks when a creator and a source of capital love each other veryRead More


Subscription Line of Credit: Benefits, Risks, and Distortions

Sep 29th, 2020 | Filed under: Featured Post, Private Equity, Private Debt, Newly Added

By Hossein Kazemi, PhD, CFA, CAIA Association, FDP Institute, and Isenberg School of Management A subscription line of credit (SLC) is one of many sources of funding that general partners (GPs) can use to invest, manage, size, and time a private equity fund’s cash flow. By far, the largest sourceRead More


VCs: Looking at a Future of Digital Therapeutics

Sep 28th, 2020 | Filed under: Featured Post, Private Equity, Newly Added

A Pitchbook report indicates that the venture capital presence in the digital therapeutics industry has increased geometrically since 2015, going from an investment of $134.3 million in that year to $1.2 billion in 2019. Further, the report suggests that digital therapeutics (DTx) is going to get bigger and more profitableRead More


Retirement’s Mid-Life Crisis

Sep 22nd, 2020 | Filed under: State of the Industry, Featured Post, Private Equity, Newly Added, Asset Allocation, Hedge Funds

By Rob Croce, PhD – Managing Director and Portfolio Manager at Mellon & Aaron Filbeck, CAIA, CFA, CIPM – Associate Director of Content Development at CAIA Association In 2000, United States 10-year government bonds rates were 6% and the median U.S. public pension plan had an actuarial return assumption ofRead More


Don’t count on multiple expansion and leverage anymore

Aug 25th, 2020 | Filed under: State of the Industry, Featured Post, Private Equity, Private Debt, Newly Added

By Wu Guowei Jack, CFA – Director of Content, APAC at CAIA Association Late Cycle Risks In the private markets world, the term “late cycle risks” has been much bandied about in recent years. A combination of high-entry multiples, high leverage, and a record amount of dry powder no doubtRead More


Will the DOL Decision on Private Equity Impact the Democratization of Alternative Investments?

Aug 4th, 2020 | Filed under: Access to Alternatives, Featured Post, Private Equity, Newly Added, Asset Allocation

By Rashad Kurbanov, CEO & Co-Founder at iownit capital and markets Alternative investments have been around for decades and have been a part of institutional investment portfolios for the majority of the time. Institutional investors have increasingly allocated their investment capital to these investments with an expectation that they willRead More


Hedge Funds and Private Equity—Building Bridges—Or Not

Jul 27th, 2020 | Filed under: State of the Industry, Featured Post, Private Equity, Private Debt, Newly Added, Asset Allocation, Hedge Funds

Alternative investment managers were evolving in the context of changing market conditions even before the Covid-19 pandemic, although the virus has speeded up the process. What is emerging is an alternatives landscape where pure-play hedge funds will be rare. That is one of the conclusions of a new study byRead More


Politics, Religion, and…Private Equity?

Jul 27th, 2020 | Filed under: Private Equity, Newly Added, What About Beta?

By Aaron Filbeck, CAIA, CFA, CIPM, Associate Director of Content Development at CAIA Association Institutional investors have dramatically increased their allocations to alternative investments over the past few decades, including increased allocations to private equity. Private capital allocations remain highest in endowment portfolios, but other institutions, such as family offices andRead More


Impact Investing Won’t Save Capitalism, But Its Example Might

Jul 22nd, 2020 | Filed under: State of the Industry, Featured Post, Private Equity, Newly Added, Asset Allocation, ESG

By Michael O’Leary and Warren Valdmanis GIIN’s 10th Anniversary report highlights new records, but what’s the endgame? When the Global Impact Investing Network (GIIN) issued its first survey a decade ago, the term “impact investing” had only been coined three years earlier. Just 24 investors responded. In GIIN’s tenth anniversaryRead More


Technology: Aiding and Abetting the Democratization of Alternative Investments

Jul 14th, 2020 | Filed under: Data Science & AI, State of the Industry, Access to Alternatives, Featured Post, Private Equity, Newly Added, Hedge Funds

A recent working paper for the European Corporate Governance Institute maintains that technology has the potential to make hedge funds and private equity more accessible to the retail investor. The paper, by Omololu Bajulaiye of Tilburg University, along with some other scholars begins with the non-controversial proposition that venture capital,Read More


FINANCIAL RETURNS IN REWARD-BASED CROWDFUNDING

Jul 5th, 2020 | Filed under: Emerging Asset Classes, State of the Industry, Access to Alternatives, Featured Post, Private Equity, Newly Added

By Victoria Dobrynskaya, PhD, associate professor of Finance at National Research University Higher School of Economics Investments in reward-based crowdfunding campaigns give backers a variety of benefits, such as enjoyment in participating in a creation of a new product, being a part of a similar-minded community, altruistic pleasure of helpingRead More


Release the {virtuous} Kraken!

Jun 9th, 2020 | Filed under: State of the Industry, Featured Post, Private Equity, Newly Added

By Jim Bethea, CAIA, CFA: CIO of The University of Iowa Center for Advancement and John L. Bowman, CFA: SMD of CAIA Associaton The cult-like declaration has its origin in the 2010 Clash of the Titans remake. While the cast was superb and it grossed nearly $500m worldwide, it wasRead More


A Target Date for Target Dates

Jun 8th, 2020 | Filed under: State of the Industry, Access to Alternatives, Private Equity, Manager Selection, Newly Added, Asset Allocation, What About Beta?

By Aaron Filbeck, CAIA, CFA, CIPM | Associate Director, Content Development at CAIA Association While every retirement plan participant has unique life and planning circumstances, they generally (and almost evenly) split into two broad categories regarding investment philosophies: the do-it-yourself crowd and the do-it-for-me crowd. The do-it-yourself crowd typically followsRead More


Major PE/VC Firms Back New Approaches to Quantum Computing

Apr 23rd, 2020 | Filed under: Data Science & AI, State of the Industry, Featured Post, Private Equity, Newly Added

In October 2019, Google announced quantum supremacy: the creation of a special-purpose computer using quantum processors that could perform a calculation impossible for a digital computer. A computer Google named Sycamore resolved in just three minutes a computational challenge that would have required a digital computer 10,000 years. Remarkable asRead More


Puzzles or LEGOs? Building a Private Equity Allocation from Scratch

Apr 5th, 2020 | Filed under: State of the Industry, Private Equity, Newly Added

Aaron Filbeck, CAIA, CFA, CIPM, Associate Director, Content Development at CAIA Association I live in the state of Ohio, which has effectively been on lockdown since the beginning of March. Thankfully, most of my daily activities haven’t been disrupted, save for a few. However, my wife, who is always lookingRead More


Funding a Covid ‘Long Shot’

Apr 2nd, 2020 | Filed under: State of the Industry, Private Equity, Newly Added, Hedge Funds

Every venture exists to solve a problem. Since the dawn of the Covid-19 pandemic, pharmaceutical companies and investors have been scrambling to solve what has quickly become one of the biggest problems in modern history. But as the Financial Times observed earlier this month: “For most biotechs, success will beRead More


The Future is in the Hands of Private Debt Funds

Mar 23rd, 2020 | Filed under: State of the Industry, Featured Post, Private Equity, Private Debt, Newly Added

A new analyst report looks at what is in store for the private markets given Covid-19, an impending economic slowdown, and energy price volatility. It argues that we are entering a bear different from other bears. This bear market may be part of a transition that will increase the roleRead More


Be Direct with Me, Please!

Mar 19th, 2020 | Filed under: State of the Industry, Private Equity, Newly Added

By Aaron Filbeck, CAIA, CFA, CIPM Associate Director, Content Development at CAIA Association Original Article: “Direct Investments” by Paul Kenny, AIAR Volume 8, Issue 3 Viewpoint Author: Aaron Filbeck, CFA, CAIA, CIPM Excerpted from the Alternative Investment Analyst Review, Volume 8, Issue 3 The Alternative Investment Analyst Review is theRead More


Diversification Strikes Back!

Mar 13th, 2020 | Filed under: State of the Industry, Real Estate, Private Equity, Newly Added, Asset Allocation, Risk Management, Hedge Funds, Commodities & Natural Resources

By Aaron Filbeck, CFA, CAIA, CIPM, Associate Director, Content Development at CAIA Association, and Keith Black, PhD, CFA, CAIA, FDP, Managing Director, Content Strategy at CAIA Association “Diversification is back” – now that’s not a phrase we’ve heard in a long time…long time. Considering recent market performance, we thought thatRead More


Are there any ‘real’ ESG unicorns?

Mar 10th, 2020 | Filed under: State of the Industry, Featured Post, Private Equity, Private Debt, Newly Added, ESG

Unicorns (privately owned start-ups with a valuation of at least $1 billion) have long been the great sought-after beasts of the VC and PE worlds. But are they good for the planet? The unicorn boom was driven by the combination of easy credit and old-fashioned hype, combined with the wayRead More


Tech M&A Market: Demanding Sellers, Fewer Buyers

Mar 3rd, 2020 | Filed under: State of the Industry, Featured Post, Private Equity, Newly Added

Corum Group, a merger and acquisitions advisor, which works with privately held technology companies, has put out its annual report, which tells us a good deal about where the action is in the tech world outside of the public markets: focusing on strategic acquirers on the one hand and privateRead More


If You Don’t Want ‘Bragging Rights’ You Can Get Alpha Done

Feb 22nd, 2020 | Filed under: State of the Industry, Featured Post, Private Equity, Manager Selection

The quarterly investor report of VCapital Management Company looks at the opportunities for attractive returns for investors regardless of the cloudy economic conditions of 2020. It argues that alpha is to be found in the Midwest, in early-stage investing, and in two industries: healthcare/biomedical and intellectual property. Though the reportRead More


The Perils of Late-Cycle Investing

Feb 11th, 2020 | Filed under: State of the Industry, Featured Post, Private Equity, Private Debt, Newly Added, Hedge Funds

It is widely believed that much of the world is now experiencing the late stages of a bull market. There will be a downturn because no tree grows to the sky. Forecasting the nature and severity of the coming downturn is tricky, but perhaps that is not the right question.Read More


Lessons from CAIS 2020

Feb 11th, 2020 | Filed under: Data Science & AI, State of the Industry, Private Equity, Private Debt, Newly Added, Asset Allocation, ESG, Hedge Funds

John Bowman, CFA, Senior Managing Director at CAIA Association “You’re a kite dancing in a hurricane, Mr. Bond.” (Mr. White to 007, Spectre) Despite the crystal blue island water, softly rolling Caribbean tide, and perfect skies outside the hotel all week, I opened my conference wrap-up panel reminding delegates forRead More


Beyond the Meat; Beyond the Traditional

Feb 6th, 2020 | Filed under: State of the Industry, Private Equity, Newly Added, Asset Allocation, ESG, Hedge Funds

By Aaron Filbeck, CFA, CAIA, CIPM, Associate Director, Content Development at CAIA Association Building the Burger I love when our industry uses analogies to describe investment concepts, so I must applaud one of the introductory pieces to JPMorgan’s 2020 Global Alternatives Outlook. In their introduction to the report, the authorsRead More


Alternative Data: A Road to Alpha

Feb 2nd, 2020 | Filed under: Data Science & AI, State of the Industry, Access to Alternatives, Featured Post, Real Estate, Private Equity, Newly Added, Asset Allocation, Hedge Funds

Investment management firms are increasingly hard-pressed to hedge away risks, increase alpha, and lower costs: a daunting agenda. One way of going about that is by knowing what is going on in the underlying markets more quickly than the competitors and counterparties do.  To that end: alternative data. Investment firms,Read More


Leery Funk’s Open Letter to Sovereign Leaders

Jan 27th, 2020 | Filed under: State of the Industry, Access to Alternatives, Private Equity, Manager Selection, Newly Added, Asset Allocation, What About Beta?, ESG

By Bill Kelly, CAIA Association CEO In the interest of brevity, I am going to skip the salutation and get right to the heart of the matter. As my name implies, I am Leery of the lofty promises that depend on solving our long-term problems and I do remain inRead More


Fossil Fuel: Divestment By the Numbers

Jan 16th, 2020 | Filed under: State of the Industry, Featured Post, Private Equity, Private Debt, Newly Added, Asset Allocation, ESG

Bill Gates, the founder of Microsoft and one of the world’s wealthiest humans, attracted a good deal of attention last fall by saying, “Divestment, to date, probably has reduced about zero tons of emissions.” He thereby put his finger on a key fault line amongst those who regard ESG investmentRead More