What areas of research are you working on today?
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| “One area is on the changing fund structures offered by GPs – they are much more bespoke and designed to match the outside options LPs have. We have already established that LP returns are very different even when they have access to the same GPs, and now we are seeing LPs build their own capabilities to make co-investments, parallel investments and direct investments. This is creating even more of a wedge between the more sophisticated investors and the rest. “I’m also conducting research with Josh on the disclosure between GPs and LPs. There is a lot of discretion among GPs about how, how much and how quickly they report to their LPs. We’re using artificial intelligence (AI) to parse reports and determine the techniques of communication and best practice – we want to help LPs understand the evolving risks in their portfolios.” Antoinette Schoar |
“It’s quite a challenge, though. In public markets, you have a lot of structured data; in private markets, you have PDFs, slides, spreadsheets and so on. It is very poorly structured and so you can’t just leave AI alone to go through this. However, we’d really like to see if we can help LPs understand better what is going on in their portfolios.” Josh Lerner |
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