Do Real Estate Lending Funds Deserve a Place in Investor Portfolios?
Commercial real estate lending funds represent an opportunity for investors worried about real estate valuations to move up the capital stack yet still earn an attractive return.
Research Publications Archive
Private Credit Strategies: An Introduction
Private credit offers distinct advantages and appeal in a low return environment, but investors should be aware that behind the name is a diverse array of strategies, some more familiar to institutional investors than others, each with idiosyncratic risks. In this report, we describe the broad array of private credit strategies and position them along the risk/return spectrum, review the investment process, discuss expectations for the performance of these strategies in various parts of the economic cycle, and highlight some key risks for investors to consider.
Policy Benchmarking: A Guide to Best Practices
Policy benchmarking is a critical component of building and managing a successful investment program. In this paper we set out our comprehensive benchmarking framework and then zero in on the policy benchmark as the primary reference point for evaluating investment decisions.
Real Asset Dynamics: August 2017
A number of Asian private equity real estate managers that we view favorably are likely to fundraise in the latter half of 2017 and first half of 2018. We expect that many of these managers, while performing well, will face challenges raising additional capital as limited partners question the merits of investing in Asian property. In particular, US investors perceive the market to be overheated and have concerns about foreign currency risks. In this edition of Real Asset Dynamics, we examine and analyze these concerns further.
Building a Case for Commercial Real Estate Debt
At this stage of the US real estate cycle, commercial real estate loans may hold some appeal for investors that are concerned about overvalued real estate equity, as well as those concerned about low spreads and excess competition in other parts of the credit market.
Is the Recent Concentration of US Equity Performance in a Small Number of Stocks a Cause for Concern?
Not in our opinion. Recent market leadership by the so-called FAAMG stocks is not extraordinary relative to history, and their valuations and fundamentals, combined with this year’s relatively healthy market breadth, mean that they don’t necessarily present an outsized threat at this time.
Annual Analysis of Foundation Investment Pool Returns: Calendar Year 2016
This report reviews portfolio returns, asset allocation, investment management structures, and payout characteristics for 112 foundations. Analysis and exhibits include performance attribution, risk analytics, policy portfolio benchmarking, the impact of private investment programs on portfolio liquidity, the use of external managers by asset class, payout rates, payout distribution components, and payout objectives.
Is the US Dollar Dead?
We are not ready to pronounce the strong dollar cycle dead, but do admit the US dollar is in critical condition. Investors should remain partially unhedged or prepared to ride out a period of currency volatility.
Funding Development for Public Universities
Investing in revenue development and fundraising while simultaneously pursuing goals for asset growth is a balancing act. This paper outlines the various funding mechanisms public universities can use to pay for development efforts, and the implications they have on the investment portfolio and enterprise as a whole.
When Secondaries Should Come First
Investors seeking to gain initial exposure to private investments should actively consider secondaries, rather than funds-of-funds, as the very first step to constructing a long-term private equity portfolio.