Asset Managers Are from Mars, Investors Are from Venus (Part 2 – A Space-Walk Down to Earth)

In the first part of this post, I wrote about how differently asset managers and investors react to stressfull situations, with the retreat to the cave of the ones contrasting with the need for increased communication and transparency of the others.

PE Duration Disambiguated (Smooth Capital)

Getting responses to questionnaires is an art and I can’t say I master it. Nevertheless, I had a few especially kind readers of my previous post who contributed their opinion (thanks!) to the embedded polls. Their results make it more interesting and “independent” to define “surprising” certain different data available in the industry.

Fooled by IRRs (Yale, Schwarzman’s Cases)

“Everyone loves an optical illusion, except when it comes to financial results (1)”. Yet the private markets are not immune from optical illusion risks.

Why IRR, PME Induce Inaccurate Allocation Decisions

In one of my previous posts, I wrote about the importance of time – of correctly framing time – for purposes of comparability and pricing. The topic is so critical not to require a second round that adds more details and practical implications.

Volatility Inhibits PME’s Meaningfulness

A recent post that summarises most of the history of the post-IRR performance calculation and valuation methodologies for the private capital industry has been written by Mr. Jesse Reyes, widely regarded as one of the leading experts of the field.