In the case of cash management, a private fund presents not only a burden but also a dilemma. While very large institutional investors have pacing plans, and serially commit across managers and vintages to obtain programmatic exposures, non-institutional investors may find this administratively burdensome. As the authors of the research paper from Cliffwater LLC explain: “Private funds take time to draw, deploy, and distribute capital, shifting the burden of cash management and commitment planning to the investor. Unfortunately, we are not done yet with addressing issues that negatively impact the performance of private equity.
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More bad news comes from the authors of the 2017 paper How Persistent Is Private Equity Performance? Evidence from Deal-Level Data?, who concluded: “Overall, the evidence we present suggests that performance persistence has largely disappeared as the PE market has matured and become more competitive.” Given such high leverage, the default rates of private equity holding companies are higher than those of publicly listed companies. PE Replication Index - the greater leverage should be considered when measuring risk-adjusted returns.
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Watch the clip of Alter Domus winning “Fund Administration Over $50bn in Total AuA” award and hear Tim’s full acceptance speech below.įind out more about our award-winning private equity solutions in our brochure. Thank you to our team this award’s for you.” It makes this recognition, this year specifically, that much more special and it couldn’t have been accomplished without our team of over 1,000 PE professionals-from the entire group of 3,000-who helped make this possible.
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The fact that we were able to continue to provide our clients the level of services that they have become accustomed to while being remote is quite an accomplishment. This award was hotly contested, and every nominee should be extremely proud of the successes our industry and our people have accomplished over the past year. The “Fund Administration Over $50bn in Total AuA” award is meant to reward larger private equity administrators that have delivered across the board with business/client growth, innovation, and client servicing over the past 12 months.Īccepting the award via livestream, Alter Domus’ Tim Toska, Global Head of Private Equity, commented: “On behalf of Alter Domus, I’m proud to accept this award recognizing our excellence in private equity fund administration. The awards aim to be a catalyst to drive up service standards across the sector by rewarding excellence in private equity servicing. The rigorous judging process is based on the views of a panel of leading private equity COOs, CFOs, CCOs, GCs and CTOs.
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The Private Equity Service Provider Awards is the most prestigious of its type in Europe.