Private Capital

Private Capital: Key to Unlocking Growth in Emerging Markets

Posted by Commonfund Institute on Apr 25, 2018

Topic: Industry Knowledge | Investment Strategy | Market Commentary | Private Capital

After a turbulent period, emerging markets have delivered double-digit returns in recent years. Private investments in emerging markets offer a way to diversify beyond the public markets and, in general, have also been a source of strong returns...

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5 Private Capital Concerns

Posted by Ralph P. Money, Peter Burns on Mar 9, 2018

Topic: Industry Knowledge | Investment Strategy | Private Capital

At the end of the year we sent out a short survey to learn more about investors’ headline concerns about the private capital markets today. Investors also shared their expectations about returns and where they see their allocations to various private strategies trending.

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Mark Anson Discusses Asset Allocation Strategy with Bloomberg Markets

Posted by Commonfund on Aug 28, 2017

Topic: Asset Allocation | Hedge Funds | Investment Strategy | Private Capital

Mark Anson, Commonfund chief investment officer, discusses his asset allocation strategy with Bloomberg's Vonnie Quinn and Simone Foxman on "Bloomberg Markets." (Source: Bloomberg)

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Making the Case for Natural Resources Investing

Posted by Ethan Levine, Paul Von Steenburg on Jul 11, 2017

Topic: Asset Allocation | Investment Strategy | Private Capital | Real Assets

The natural resources sector is often characterized as cyclical, as producers and service providers experience underlying exposure to and commensurate volatility of commodities in the oil and gas, mining and agriculture sectors. After a couple of years of challenging sector returns, some institutional investors are questioning what the role of natural resources should be in a portfolio and if now is a good time to invest in the asset class.

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Meeting the
Challenge of CPI +5%

Posted by Commonfund on Mar 21, 2017

Topic: Asset Allocation | Equities | Industry Knowledge | Investment Strategy | Private Capital

Despite the fact that the economy is expanding and the S&P 500 has been up for eight straight years, many nonprofit investors haven't been feeling the benefits as the main tenets of the endowment model of investing have been hampered by the market environment. In this Commonfund Forum 2017 session, Commonfund President & CEO, Catherine Keating, provides insight into the challenges of meeting CPI + 5% for fiduciaries. To obtain a copy of the slides shown in this presentation, please contact your Commonfund relationship officer.

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Venture Capital: What’s Next? | Strategy & Manager Spotlight – Josh Kushner

Posted by Commonfund on Dec 15, 2016

Topic: Private Capital

Commonfund Capital reviews their venture capital investing strategy and guest speaker Josh Kushner, Founder and Managing Partner of Thrive Capital, talks about the current venture capital environment.

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Venture Capital – Looking Forward and Upward

Posted by Aaron Miller, Kent Scott on Dec 5, 2016

Topic: Investment Strategy | Private Capital

Beginning in the second half of 2015, there was growing caution that started to impact pricing and investment activity in early 2016. This valuation cooling period and subsequent shift in mindset appears to have been brief and private valuations have generally held steady, particularly in early-stage. The market appears to be bifurcating where companies in large markets that are growing with attractive unit economies are able to close financings at high valuations while companies with average performance are experiencing protracted fundraisings at mixed valuations. As a result, we continue to see more money going into fewer and higher profile winners.

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Asset Allocation with Private Equity

Posted by Commonfund on May 2, 2016

Topic: Asset Allocation | Investment Strategy | Private Capital

Private assets such as private equity and venture capital have long been a thorn in the side of asset allocators and chief investment officers. Their lack of liquidity makes it hard to model their return streams as an input to an asset allocation model, risk budget, or optimization function. Typically, asset allocators make assumptions based more on intuition and expectation than fact.

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Private Capital Secondaries and Solving for CPI +5%

Posted by Scott Beckelman, Peter Burns, Cari Lodge on Apr 11, 2016

Topic: Private Capital

In an environment of muted equity and fixed income market returns how can institutional investors achieve their long-term target returns? Commonfund believes that maximizing the illiquidity return premium of private capital investments is one approach that can deliver compelling results.

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Global Economic & Investment Outlook:
2016 – A Year of Transition

Posted by Commonfund on Jan 4, 2016

Topic: Asset Allocation | Equities | Fixed Income | Hedge Funds | Market Commentary | Private Capital

Our 2016 Global Economic and Investment Outlook provides a detailed look at our expectations and portfolio positioning going forward.

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Global private equity: what and why

Posted by Mark Hoeing, Miriam Schmitter on Aug 17, 2014

Topic: Asset Allocation | Industry Knowledge | Private Capital

An article in the previous issue of Insight sought to discern the difference between perception and reality in private equity investing generally, and included a companion article focused on European private equity specifically. Now, we take a deeper look at international private equity, with an emphasis on Europe as well as Japan and Australia. Once again, there is a perception gap that may lead long-term institutional investors seeking to diversify their portfolio both by asset class/strategy and geography to overlook what we believe are compelling opportunities outside the U.S. Herewith, the what and why of international private equity.

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Private equity: perception and reality

Posted by Peter Burns, Mark Hoeing, Kent Scott on Apr 12, 2014

Topic: Equities | Private Capital

For a variety of reasons, some investors believe that private equity may have lost its edge as a key allocation for their portfolios. This perception may overlook reality. A closer examination reveals that the fundamentals are intact and there are attractive opportunities for skilled private equity managers. As always, investors should be discerning in their choice of managers, and continue to place access ahead of allocation. Here, a look at some widely held perceptions and the reality that may be overlooked or misunderstood.

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Straight Talk About Private Equity

Posted by Commonfund on Apr 1, 2014

Topic: Private Capital

For reasons unknown, many investors assume that private equity may have lost its edge as a key allocation for their portfolios. This perception, however, may not align with reality.By taking a closer look, investors will see that the fundamentals are still intact and there are many attractive opportunities for skilled private equity managers. In this…

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Subscribe and Manage Your Frequency to Insights Blog

Posted by Commonfund on Jan 5, 2014

Topic: Asset Allocation | Equities | Fixed Income | Governance and Policy | Hedge Funds | Industry Knowledge | Market Commentary | Operating Assets | Outsourced Investing | People | Private Capital | Responsible Investing | Risk Management

Subscribe to the Insights Blog from Commonfund to stay informed with the latest information for nonprofit investors and the public sector.

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What, me? Illiquid?

Posted by Kent Scott, Paul Von Steenburg, Timothy Yates, Jr. on Oct 1, 2013

Topic: Industry Knowledge | Private Capital

In the wake of the Global Financial Crisis, institutional investors were rightfully concerned about the liquidity profiles of their long term portfolios. Although markets have recovered substantially since the depths of that crisis, illiquidity remains an important topic with lingering concerns about locking up capital for 10-plus years.

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‘What, me? Illiquid?’

Posted by Kent Scott, Paul Von Steenburg, Timothy Yates, Jr. on Apr 12, 2013

Topic: Industry Knowledge | Private Capital

Although it has been five years since the collapse of Lehman Brothers—an event that transformed a bad recession into a global financial crisis—the scars of that traumatic episode remain etched in the psyche of many institutional investors. We have new worst-case scenarios in our risk models and a greater appreciation for so-called “black-swan” or “left-tail” events. Nowhere is this lingering fear more palpable than in the consideration of illiquid investments as investors continue to think through the amount of capital to lock up in “illiquid” strategies. Because of this recent history and uncertainty about the future, we often hear investors ask, “Why should I lock up capital for 10-plus years? And if I should, how much?”

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