Asset Allocation and Private Markets: A Guide to Investing with Private Equity, Private Debt, and Private Real Assets (Wiley Finance)

Asset Allocation and Private Markets: A Guide to Investing with Private Equity, Private Debt, and Private Real Assets (Wiley Finance)

The comprehensive guide to private market asset allocation Asset Allocation and Private Markets provides institutional investors, such as pension funds, insurance groups and family offices, with a single-volume authoritative resource on including private markets in strategic asset allocation. Written by four academic and practitioner specialists, this book provides the background knowledge investors need, coupled with practical advice from experts in the field. The discussion focuses on private equity, private debt and private real assets, and their correlation with other asset classes to establish optimized investment portfolios. Armed with the grounded and critical perspectives provided in this book, investors can tailor their portfolio and effectively allocate assets to traditional and private markets in their best interest. In-depth discussion of return, risks, liquidity and other factors of asset allocation takes a more practical turn with guidance on allocation construction and capital deployment, the “endowment model,” and hedging ― or lack thereof.  Unique in the depth and breadth of information on this increasingly attractive asset class, this book is an invaluable resource for investors seeking new strategies. Discover alternative solutions to traditional asset allocation strategies - Consider attractive returns of private markets - Delve into private equity, private debt and private real assets Gain expert perspectives on correlation, risk, liquidity, and portfolio construction Private markets represent a substantial proportion of global wealth. Amidst disappointing returns from stocks and bonds, investors are increasingly looking to revitalise traditional asset allocation strategies by weighting private market structures more heavily in their portfolios. Pension fund and other long-term asset managers need deeper information than is typically provided in tangential reference in broader asset allocation literature; Asset Allocation and Private Markets fills the gap, with comprehensive information and practical guidance. As fund managers struggle with lackluster returns from bonds and increased volatility from stocks, private market assets (private equity, private debt, and private real assets), have become increasingly interesting to pension managers and other asset allocators. Asset Allocation and Private Markets: A Guide to Investing with Private Equity, Private Debt, and Private Real Assets delivers a compelling case for the need to adapt asset allocation strategies by integrating and allocating a significant proportion of assets to private market structures. The book offers readers practical and straightforward advice on mixing private asset with other asset classes by exploring returns on private equity, risk management, the endowment model, the construction and deployment of an allocation, and liquidity management. Written from the ground up to provide asset managers with a single authoritative source on private asset allocation, the book describes how private market investments imply to deal with market imperfections and asymmetries of information and offers an extended range of investment strategies. The book covers strategies ranging from venture capital to turnaround capital, and private debt investing techniques including direct lending and distressed debt. Private real assets, including infrastructure, natural resources, and private real estate are also covered. Perfect for institutional investors, pension funds, fund managers, sovereign wealth funds, asset allocation consultants, insurance groups, endowments, and foundations, Asset Allocation and Private Markets will also be of interest to sophisticated family offices and students and scholars in finance and business. The book is a vital consideration of asset classes that, together, represent a substantial and fast-growing portion of global wealth and are increasingly looked to by investors to enhance portfolio returns. Praise for Asset Allocation and Private Markets “This book represents an excellent summary, both precise and educational, of investment and allocation questions in private assets. It is just as suitable for a professional audience as for students who wish to go into the details of the allocation challenges and techniques in private markets.” ―Noël Amenc, CEO, Scientific Beta; Head, SGX Index; Associate Professor of Finance, EDHEC Business School “Overall well-written, addressing a number of very interesting, real-life topics of the illiquid market investor which are often not well understood by many market participants.” ―Markus Benzler, Managing Director, UBS Global Asset Management “Sophisticated institutional investors show an increased interest in private markets. They are ramping up their investments in this asset class, but this exercise remains difficult. The standard conceptual framework is not designed for less liquid assets. The authors provide a bridge between this framework and private markets,