Topics
Foreword By the numbers
Meet the panel
The role of interim valuations
Mitigating uncertainty around interim valuations
Factors that impact interim valuations
What of interim performance?
Monitoring historical movement of marks
The impact of prolonged illiquidity
Managing loss ratios
The importance of LP loss ratios
Gaming loss ratios - should you be concerned?
Alternatives for investors gauging risk levels
Lessons from the papers for LPs?
Managing loss ratios
Foreword By the numbers
Fit for the future
Time to engage?
Roundtable: Patterns of performance
The role of interim valuations
Mitigating uncertainty around interim valuations
Factors that impact interim valuations
What of interim performance?
Monitoring historical movement of marks
The impact of prolonged illiquidity
Managing loss ratios
The importance of LP loss ratios
Gaming loss ratios - should you be concerned?
Alternatives for investors gauging risk levels
Lessons from the papers for LPs?
Head to head: Portfolio construction
The last word
Roundtable: Patterns of performance
Yet even in realised returns, there seem to be patterns to watch out for. Gregory, your research looks at deal-level MOICs and finds that a disproportionate number of deals achieve a multiple of 1.0x. The findings suggest that GPs are actively managing loss ratios, particularly during fundraising. But what are managers actually doing?
“We can see in the data that managers tend to hold on to assets for longer if the deal is under water, presumably in the hope that rising tides lift all boats. The trouble is that loss ratios are particularly subject to gaming because in a buyout fund, you may be talking about only one or two deals.
“Furthermore, the motivations for gaming are clear. The data shows that funds identified as being more likely to have manipulated their loss ratios raise larger funds and do so more quickly.”
Gregory Brown
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