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...Florman said: “There is the risk that when your assets under management become too big, you fall into the mature category and the energy and the edginess can go away.”...
...But regulators are studying the liquidity risks being stored up in these strategies, and the potential spillover effects for the wider financial sector....
...Yet he said he expected the stress to be manageable as Princo had already taken measures to trim risks....
...“Public pension funds have for many years poured money into private equity on the premise that it was high-return and low-risk while illiquidity was deemed not to be an issue,” said Richard Ennis, co-founder...
...’ chief risk officers....
...In the late 1990s, Princeton allocated just 25 per cent collectively to private equity and real estate. Its target now is at 48 per cent....
...EFW use a risk factor model that compares the cash flows of the private credit funds with those of publicly traded assets, and finds that private credit cash flows have both debtlike and equity-like risk...
...While new Fed proposals to increase bank capital (dubbed the “Basel endgame”) are being recalibrated, further adjustments to liquidity, capital rules and risk management practices are nonetheless likely....
...The great majority of private credit funds poses little maturity transformation risk, yet the growth of semiliquid funds could increase first-mover advantages and run risks....
...Despite sounding alarm bells about private markets for months, the BoE’s understanding of the financial stability implications of a private equity slowdown is less comprehensive than that of the risks from...
...“We only provide that service to a very select clientele now,” Johnson said of the armed guards....
...The recipe for managing the Government Pension Fund Global has been broad and systematic risk diversification and economies of scale in open public markets....
...Private equity could prove to be a test that Ivy League endowments risk failing, according to Lex....
...The IMF is urging regulators to consider the risks to the financial system posed by insurers either owned by — or whose assets are managed by — private equity groups....
...Second, the risk that large losses on a few funds spark a wave of redemptions and a run-on private debt funds is also low....
...And opacity makes it difficult to tally valuation losses or potential systemic risks....
...Many banks, she reckons “are unable to uniquely identify and systematically aggregate or measure their combined credit and counterparty risk exposures to the private equity sector”....
...They seek regulatory certainty, political risk insurance and foreign exchange risk mitigation....
...Kwah also warns that the risk level may not be obvious. “Private credit typically involves lending to unrated or unlisted companies and is therefore less transparent,” he says....
...The private equity group is set to go public as soon as this Friday, ending three decades as a closely held, fiercely private company....
...“We are not talking VC private equity returns, we are talking about steady returns which are commensurate to the risks,” he said....
...Last year the firm partnered with investment giant KKR to acquire a $7.2bn loan portfolio from Canadian bank BMO, buying up debts at a time that many lenders in North America were cutting their risk appetites...
...Rebecca Gooch, global head of insights for Deloitte Private, a division of the Big Four consultancy group, says: “Women can gravitate towards investments and services that resonate with their values, ensure...
...Even one of the overarching review studies that NBIM itself cites — Risk And Return in Private Equity by the University of Southern California’s Arthur Korteweg — indicates that “when additional risk factors...
...But the plan has prompted warnings from the private sector of higher costs and reduced services....
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