To Roll or Not to Roll (Forward): LP NAV Estimation for Private Equity and Real Estate
Pending receipt of the GP NAVs, LPs grapple with getting a real-time NAV for risk management and rebalancing purposes. What LP method has performed the best?
As corporations migrate to defined contribution (DC) plans, asset allocators are increasingly interested in incorporating illiquid private assets in these retirement funds to offer participants the same menu of investment options as defined benefit (DB) plans.
Across the globe, multi-employer retirement plans such as Australian superannuation funds now operate in an increasingly dynamic and evolving market and regulatory environment. In addition, governments are encouraging plans to bolster retirement outcomes and support national economic growth by investing in illiquid private assets such as private equity, venture capital and infrastructure.
In an article originally published by the "Australian Financial Review," PGIM's Institutional Advisory & Solutions team (IAS) shares insights from its research on the the challenges presented by this evolving landscape and provides perspective on how investors can navigate the challenges of illiquid private assets, including uncertain cash flows, asset pacing and rebalancing.