Commentary

06 Oct

Predicting Top Quartile Private Equity Performance

“Past performance is not an indicator of future results.”   A well-known, well-used adage in the investment world, but how applicable is it to private equity? According to a number of research studies on the asset class, extremely. One of the first studies to investigate the persistence of PE performance was published in 2014 by [...]
04 Oct
fee research

Distribution Increasingly Key to Success in Asset Management

In the asset management business, distribution, the process by which asset management firms compete for and retain assets, is increasingly being recognized as a key component to firm success As the Boston Consulting Group points out in its recent “Global Asset Management 2017: The Innovator’s Advantage” report: “Tomorrow’s industry leaders will appear quite different from [...]
29 Sep

Quantifying the Impact of Investors’ Skill on Private Equity Portfolio Returns

While all institutional investors strive to predict and select top quartile private equity funds, there is a significant cost of missing out on these funds. According to various research studies, the difference between being invested in a top quartile and bottom quartile private equity fund has a significant impact on fund returns, reported at as [...]
18 Jul

Fund Terms, Due Diligence and Transparency in a Hot Private Equity Fundraising Market

The combination of a low interest rate environment and record distributions from private fund managers in recent years has not just piqued institutional investors’ interest in the asset class, but is leading to real allocation changes. Consequently, GPs that can show a strong track record are in high-demand and closing fundraises in increasingly shorter timescales [...]
17 Jul

Assessing Alpha in Private Equity Returns with Public Market Equivalent Analysis

With private equity experiencing a streak of record distributions over the past four years (figure 1), investors have been quick to re-invest to capture the value private equity brings. This is evidenced by the strong fundraising environment – PEI reported that 2017 H1 global private equity fundraising totaled $264bn, the highest H1 number since 2008 [...]
21 Jun

Five Ways for Managers to Find Success on Investment Databases

John Molesphini, Global Head of Client Success for eVestment, was recently invited to participate in a FundFire webcast along with Meredith Jones from Aon Hewitt on the topic of how asset managers can find success on investment databases. Database profiles are an important first step for managers wanting to gain exposure to the institutional investor [...]
16 Jun

How Asset Managers Can Use Data to Enhance Finals Presentations

A recent article in industry publication FundFire discussed how preparation, execution and luck all factored into successful finals presentations. The article states that, on average, just 3% of about 2,500 U.S. equity strategies tracked by large investment consultants ever make it into finals presentations, according to Greenwich Associates. “A successful finals presentation is one where [...]
25 May
fee research

Using Public Plans to Gain Insight into Manager Fees

Public plans provide institutional investors a means to extract a variety of industry intelligence. Even if you are not a public plan or do not work with a public plan, you can still gain a lot of knowledge from researching manager presentations, consultant presentations, research topics, asset allocations and fee-specific information. Better compare new managers. [...]
23 May

African Fund Managers Attract Global Investors in First Quarter

African-based fund managers enjoyed a strong start to 2017 with increased interest and flows from international institutional investors. Views of products managed by African managers jumped 64 percent in the first quarter compared with the previous three months, according to eVestment data, while net positive institutional flows reached their highest level since the third quarter [...]
22 May

Five Ways for Active Managers to Ward Off Passive Momentum

The active asset management industry is going through a tough time, especially in the U.S. market, due to investors’ preferences shifting toward passive funds. Industry publication FundFire held a recent webcast talking about how active institutional asset managers can fight back against passive management’s momentum. Panelists discussed how firms are turning to in-depth analysis, customized [...]