Better Alternative(s): Private Investments May Improve Outcomes for Defined Contribution Plan Participants

For decades, many institutional investors with private investment (PI) exposure have generated strong long-term returns. However, defined contribution (DC) plan participants have not been able to benefit in the same way, as employers have historically been limited to investment line-ups featuring predominantly public market asset classes. Although greater flexibility is emerging, the question remains how […]

March 2024

In Private Investment, Diverse Fund Management Teams Have Opened Doors

Portfolio diversification is fundamental to effective investment risk management. The term “diversification” traditionally includes asset classes, investment approaches, industry sectors, and geographies. But a vital and often-overlooked dimension of diversification is the people driving portfolio decision making. This dimension of diversification may be especially important in private markets because an asset manager’s deal sourcing is […]

March 2024

A Changed Investment Landscape Is Providing Greater Opportunity for US Corporate Pensions

Over the past decade, executives overseeing corporate defined benefit (DB) pension plans have experienced significant regulatory reform and a full reversal of investment conditions. While rising liabilities once offset asset gains, the opposite is now true. Yet many organizations haven’t recalibrated their approach to plan management in response, leaving them exposed to unnecessary costs and […]

January 2024

2024 Outlook: Private Equity & Venture Capital

We expect US venture capital down rounds will increase, even as artificial intelligence continues to serve as a major catalyst within the market. We believe flows to European turnaround and value strategies will increase and flows to China private investments will remain muted. We expect secondary transaction volume will increase to a record level. Down […]

December 2023

Is All Growth Investing “Growth Equity”?

No. In recent years, many private investment fund managers (GPs) have painted themselves with a growth equity brush. Limited partners (LPs) need to be increasingly diligent to determine if they are accessing the truly differentiated and attractive investment profile offered by actual growth equity. Back in 2013, we shared our definition of growth equity as […]

December 2023

Pool Hopping: ERISA-Regulated Defined Benefit Plans May Have More Private Investing Flexibility Than They Realize

This paper discusses the qualified professional asset manager (QPAM) exemption, an established, ERISA-approved exemption related to private investing programs. The US Department of Labor (DOL) published its Final Amendment of the exemption on April 3, 2024 which will be effective as of June 17, 2024. Plans wishing to undertake a QPAM transaction should consult with […]

November 2023

Shelter from the Storms: Diversification and Opportunity for Pensions in Insurance-Linked Securities

The importance of portfolio diversification gained new currency following the down market of 2022, which showcased the frailties of the traditional 60/40 portfolio and left many investors scrambling for protection. For pension funds looking to meet this need, we believe insurance-linked securities (ILS) can be a good fit. While implementation and benchmarking are less straightforward […]

October 2023

Six Things to Know About Co-investments

Let’s Get Smarter as Co-investing Gets Harder. Investor interest in co-investing has grown in recent years, given the benefits (discussed in more detail below) for both general partners (GPs) and limited partners (LPs). The co-investment universe has grown rapidly, with Cambridge Associates (CA) estimating total private equity co-investment activity in 2022 to have been ~$50 […]

September 2023