The 15 Percent Frontier
With virtually limitless choices along the asset allocation spectrum, an allocation to private investments greater than 15% has served many investors well. Are you on the right track?
July 2016
Venture Capital Disrupts Itself: Breaking the Concentration Curse
The widely held belief that 90% of venture industry performance is generated by just the top ten firms is a catchy but unsupported claim that may lead investors to miss attractive opportunities with managers that can provide exposure to substantial value creation.
November 2015
Private Investments: Filling a Pension’s Return Void
Well-diligenced private investments in a skillfully constructed portfolio are important growth drivers that have helped pension funds deliver superior performance and increased the probability of meeting or exceeding long-term required returns.
October 2015
Want to Own a Previously Private Equity–Owned Company? Quite Possibly YES
Whether investors are ready to admit it or not, sponsor-to-sponsor transactions—in which one private equity sponsor sells its stake in a company to another private equity sponsor—are here to stay, and that may not be a bad thing.
October 2015
Constructing Superior Equity Portfolios
A common perception among investors that employ active equity management is that the “donut” structure is more aggressive, more expensive, and riskier than the “core-satellite” structure because of the donut structure’s heavier reliance on concentrated, high tracking error, high fee managers. The research we present in this report, which examines a 17-year period, calls into question these perceptions. Our analysis suggests that, at a minimum, investors should reassess whether a core-satellite structure is as likely to help them earn their payout as a donut structure.
September 2015
Making Waves: The Cresting Co-Investment Opportunity
Private investing without a fee drag! Directly invest in the best companies alongside the best general partners! The headlines resound, while GP offerings and investor interest in co-investments swell. Our analysis shows that co-investment returns have the potential to outpace private fund investment returns. However, not every individual co-investment outperforms, and therein lies the rub. This report frames the opportunities and common pitfalls of co-investing, leveraging our aggregated data on co-investments and funds generating co-investment.
March 2015
Declaring a Major: Sector-Focused Private Investment Funds
The competitive advantages and resulting return profile of sector specialists should not be ignored when constructing a long-term private equity portfolio
November 2014
A Framework for Benchmarking Private Investments
Private investments often play an important role in an investor’s portfolio, yet the inconsistent methodologies typically used to evaluate private investment performance and public market performance result in a lack of understanding about true relative performance. This report provides our views on best practices for measuring private investment performance and introduces a framework for benchmarking private investments.
March 2014