The comprehensive guide to private market asset allocation Asset Allocation and Private Markets provides institutional investors, such as pension funds, insurance groups and family offices, with a single-volume authoritative resource on including private markets in strategic asset allocation. Written by four academic and practitioner specialists, this book provides the background knowledge investors need, coupled with practical advice from experts in the field. The discussion focuses on private equity, private debt and private real assets, and their correlation with other asset classes to establish optimized investment portfolios. Armed with the grounded and critical perspectives provided in this book, investors can tailor their portfolio and effectively allocate assets to traditional and private markets in their best interest. In-depth discussion of return, risks, liquidity and other factors of asset allocation takes a more practical turn with guidance on allocation construction and capital deployment, the “endowment model,” and hedging — or lack thereof. Unique in the depth and breadth of information on this increasingly attractive asset class, this book is an invaluable resource for investors seeking new strategies. Discover alternative solutions to traditional asset allocation strategies Consider attractive returns of private markets Delve into private equity, private debt and private real assets Gain expert perspectives on correlation, risk, liquidity, and portfolio construction Private markets represent a substantial proportion of global wealth. Amidst disappointing returns from stocks and bonds, investors are increasingly looking to revitalise traditional asset allocation strategies by weighting private market structures more heavily in their portfolios. Pension fund and other long-term asset managers need deeper information than is typically provided in tangential reference in broader asset allocation literature; Asset Allocation and Private Markets fills the gap, with comprehensive information and practical guidance.

The comprehensive guide to private market asset allocation Asset Allocation and Private Markets provides institutional investors, such as pension funds, insurance groups and family offices, with a single-volume authoritative resource on including private markets in strategic asset allocation. Written by four academic and practitioner specialists, this book provides the background knowledge investors need, coupled with practical advice from experts in the field. The discussion focuses on private equity, private debt and private real assets, and their correlation with other asset classes to establish optimized investment portfolios. Armed with the grounded and critical perspectives provided in this book, investors can tailor their portfolio and effectively allocate assets to traditional and private markets in their best interest. In-depth discussion of return, risks, liquidity and other factors of asset allocation takes a more practical turn with guidance on allocation construction and capital deployment, the “endowment model,” and hedging — or lack thereof. Unique in the depth and breadth of information on this increasingly attractive asset class, this book is an invaluable resource for investors seeking new strategies. Discover alternative solutions to traditional asset allocation strategies Consider attractive returns of private markets Delve into private equity, private debt and private real assets Gain expert perspectives on correlation, risk, liquidity, and portfolio construction Private markets represent a substantial proportion of global wealth. Amidst disappointing returns from stocks and bonds, investors are increasingly looking to revitalise traditional asset allocation strategies by weighting private market structures more heavily in their portfolios. Pension fund and other long-term asset managers need deeper information than is typically provided in tangential reference in broader asset allocation literature; Asset Allocation and Private Markets fills the gap, with comprehensive information and practical guidance.

Asset Allocation with Private Equity addresses the central question "What is the optimal portfolio allocation to private equity?" The authors have two goals. The first is to survey the literature on the private equity partnership arrangement from an investor's perspective. The second is to articulate a list of open questions in the literature.The monograph is organized to lead from a description of theoretical and empirical work toward open questions. To that end, a substantial number of recent and unpublished working papers are included in the monograph. It proceeds as follows: Section 2 contains institutional details regarding PE firms, funds, and investors. For some readers this will be a review, but it is included because the institutional details are required to understand the decision rights that the LP grants the GP and how those decisions are usually executed. There is a discussion of the GP's incentives, which pervades the discussion of selected data and pricing power later in the monograph. To understand why the institutional details of PE matter for LPs, one has to understand the uses and limitations of the benchmark portfolio choice model. To this end, Section 3 reviews a standard portfolio choice model and shows how the characteristics of PE violate the model's core assumptions. Section 4 describes the methods and problems with measuring performance in PE. Section 5 shifts the focus from PE investments to PE investors and examines the returns and pricing power of LPs. Section 6 focuses on LPs' diversification problem and their liquidity management problem, including the role of the secondary market. The authors close with a summary of some recent work in optimal portfolio allocation to PE.

Asset Allocation with Private Equity addresses the central question "What is the optimal portfolio allocation to private equity?" The authors have two goals. The first is to survey the literature on the private equity partnership arrangement from an investor's perspective. The second is to articulate a list of open questions in the literature. The monograph is organized to lead from a description of theoretical and empirical work toward open questions. To that end, a substantial number of recent and unpublished working papers are included in the monograph. It proceeds as follows: Section 2 contains institutional details regarding PE firms, funds, and investors. For some readers this will be a review, but it is included because the institutional details are required to understand the decision rights that the LP grants the GP and how those decisions are usually executed. There is a discussion of the GP's incentives, which pervades the discussion of selected data and pricing power later in the monograph. To understand why the institutional details of PE matter for LPs, one has to understand the uses and limitations of the benchmark portfolio choice model. To this end, Section 3 reviews a standard portfolio choice model and shows how the characteristics of PE violate the model's core assumptions. Section 4 describes the methods and problems with measuring performance in PE. Section 5 shifts the focus from PE investments to PE investors and examines the returns and pricing power of LPs. Section 6 focuses on LPs' diversification problem and their liquidity management problem, including the role of the secondary market. The authors close with a summary of some recent work in optimal portfolio allocation to PE.

How can private equity investors exploit investment opportunities in foreign markets? Peter Cornelius uses a proprietary database to investigate and describe private equity markets worldwide, revealing their levels of integration, their risks, and the ways that investors can mitigate those risks. In three major sections that concentrate on the risk and return profile of private equity, the growth dynamics of discrete markets and geographies, and opportunities for private equity investments, he offers hard-to-find analyses that fill knowledge gaps about foreign markets. Observing that despite the progressive dismantling of barriers investors are still home-biased, he demonstrates that a methodical approach to understanding foreign private equity markets can take advantage of the macroeconomic and structural factors that drive supply and demand dynamics in individual markets. Foreword by Josh Lerner Teaches readers how to investigate and analyze foreign private equity markets Forecasts private equity investment opportunities via macroeconomic and structural factors in individual markets Draws on data from a proprietary database covering 250 buyout and VC funds and 7,000 portfolio companies

Alternative Investments: A Primer for Investment Professionals provides an overview of alternative investments for institutional asset allocators and other overseers of portfolios containing both traditional and alternative assets. It is designed for those with substantial experience regarding traditional investments in stocks and bonds but limited familiarity regarding alternative assets, alternative strategies, and alternative portfolio management. The primer categorizes alternative assets into four groups: hedge funds, real assets, private equity, and structured products/derivatives. Real assets include vacant land, farmland, timber, infrastructure, intellectual property, commodities, and private real estate. For each group, the primer provides essential information about the characteristics, challenges, and purposes of these institutional-quality alternative assets in the context of a well-diversified institutional portfolio. Other topics addressed by this primer include tail risk, due diligence of the investment process and operations, measurement and management of risks and returns, setting return expectations, and portfolio construction. The primer concludes with a chapter on the case for investing in alternatives.

Debunking outdated and inaccurate beliefs about investment management and reveals the new realities of the post-modern financial markets There have been a lot of big changes in the investment world over the past decade, and many long-cherished beliefs about the structures and performance of various investments no longer apply. Unfortunately the news seems not to have reached many thought leaders and investment professionals who persist in trying, and failing, to apply 20th-century thinking to 21st-century portfolio management. Nowhere is this more true than when it comes to the subject of alternative investments. Written by an all-star team of investment management experts, this book debunks common myths and misconceptions about most classes of alternative investments and offers valuable advice on how to develop investment management and asset allocation strategies consistent with the new realities of the ever-changing world of alternative investments. Covers most alternative asset classes, including private equity, real estate, managed futures, hedge funds, commodity indices, and more Debunks long-held assumptions about the structure and performance of various investment classes that continue to dominate the industry Explores the implications for investment managers of the proliferation of international marketable securities and global financial markets Provides an overview of both the micro and the macro aspects of each alternative investment class