For institutional investors, cryptocurrencies also offer the allure of extraordinary and diversified returns in a market that is now of sufficient size and liquidity for meaningful institutional positions. Indeed, some market participants estimate that about 5% of total Bitcoin supply are now held by institutional investors…
A new investment environment is emerging with opportunities that may not have existed in years. Uncertainty remains high, but the good news is, in 2024, investors may be rewarded for taking risk again.
The last 30 years have seen a steady growth and acceptance of alternative asset classes in institutional portfolios as investors seek diversified sources of income and return. These asset classes are sometimes called illiquid or private asset classes because one important characteristic is that they are not publicly listed…
In this uncertain market environment, investors struggle to enhance returns and reduce risk. Private assets — those not traded on public exchanges, including debt, equity, real estate and real assets — may help achieve those goals. Investors should consider three important benefits as they evaluate allocating to private…
This guide covers a range of UK roles. They are: accounting and finance, actuarial, compliance, risk, front office, banking operations, private equity, and treasury.
In a context of higher yield environment, closing of duration gaps but also risk of lapse, liquidity and recession, European insurers have started to shift their portfolios towards more liquid assets (while maintaining exposure to less liquid such as real estate or private equity).
Many institutional investors have historically viewed secondary strategies as a beneficial allocation early in a private equity program’s life due to several potential attractive features, including J-curve mitigation, efficient capital deployment, significant diversification, and, importantly, the compelling opportunity for…
CIOs often grapple with obtaining timely net asset values (NAVs) of their private fund shares for reporting, risk management and rebalancing purposes. Many CIOs, as limited partners (LPs), rely on NAVs reported by their general partners (GPs). Yet, timely GP-supplied NAVs can be elusive, prompting LPs to lean on their own…
This guide covers U.S. roles in the following financial modeling roles: investmement banking, corporate accounting, private equity, hedge funds, equity research, financial planning, and risk analysis.
This Hong Kong salary guide provides pay expectations for the following sectors: banking and financial services, asset management, hedge funds, private equity, risk and compliance, front office, middle office, and back office.
Over ten trillion dollars are allocated to private market funds that require outside investors to commit to transferring capital on demand; most of these funds are Private Equity (PE). We show within a novel dynamic portfolio allocation model that ex-ante commitment has large effects on investors’ portfolios and welfare, and…
This is a transcript of a webinar where Frank Fabozzi, Professor of Finance at EDHEC Business School and a Senior Scientific Adviser at EDHEC-Risk Institute, was joined by Andrew Weisman from Windham Liquid Alternatives, Alexander Rudin from State Street Global Advisors, and Mark Anson from Commonfund for this virtual panel…
Private debt offers a broad and diverse investment universe that is often well-suited to an insurer’s balance sheet. However, approaches that focus on certain sub-types of private debt could create barriers to effective investment over time and inadvertently narrow the opportunity set. By looking at private debt mandates…
This paper outlines a pragmatic and multi-pronged approach to cashflow forecasting that SimCorp believes can form the basis of a prudent system for making sense of this complex, challenging, yet increasingly relevant, corner of the investment world. It is also to be seen as an integral part of SimCorp’s strategy management,…
Private debt funds are the fastest growing segment of the private capital market. We evaluate their risk-adjusted returns, applying a cash-flow based method to form a replicating portfolio that mimics their risk profiles. Using both equity and debt benchmarks to measure risk, a typical private debt fund produces an…
The seismic shift in energy consumption will have significant consequences for energy investors, across all asset classes. This report is primarily written for private equity investors – both General Partners (GPs) and Limited Partners (LPs) – and highlights the unique risks which they face from continued investment in…
The claims of superior risk-adjusted performance by the PE industry are exaggerated. Given their lack of liquidity, opaqueness, and greater use of leverage, it seems logical that investors should demand something like a 3-4% IRR premium. Yet, there is no evidence that the industry overall has been able to deliver that.
We explore four key private equity questions to help investors better understand how these strategies compare and complement each other in a portfolio. In particular, we highlight the distinct opportunity sets, risk-return characteristics, and portfolio roles of venture capital and buyout strategies.
The continued popularity of sustainable strategies could create sufficient cash flows to offset the risk premium in the lower-scoring stocks, at least until an equilibrium is reached.