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?
PGIM’s Institutional Advisory & Solutions team recently co-authored Building a Better Portfolio: Balancing Performance and Liquidity with the GIC EIS, a global investment firm established to manage Singapore’s foreign reserves. The publication explores the framework IAS and GIC EIS developed to link top-down asset allocation with bottom-up private-asset investing.
Given the current volatility of markets, this framework is particularly relevant to investors. In an exclusive webcast hosted by GIC, the authors from IAS and GIC help members of the International Forum of Sovereign Wealth Funds (IFSWF) understand how different portfolio structures, private asset commitment strategies and market conditions may affect their ability to respond to various liquidity demands over multiple time periods.
Balancing Performance and Liquidity
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The IAS team conducts bespoke, quantitative client research that focuses on asset allocation and portfolio analysis.
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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?
We estimate the real-world performance of a private strategy – different vs. the reported performance – and fairly compare it with that of a public strategy.
The long-term benefits of creating a Chief Liquidity Officer role are probably worth the effort.