Optimizing LP PEVC Portfolios
In a multifaceted project, we performed a comprehensive evaluation of the investment activities of a large institutional investor and provided a series of quantitative tools to help the group optimize its private capital portfolio moving forward. We assessed and benchmarked the group's returns across different geographies and asset classes, and examined the impact of exchange rate fluctuations on the private capital portfolio's performance. We also assessed the relative value generated in various steps of the group's asset allocation process, such as allocating assets across regions, strategies, and fund managers. Additionally, we examined issues surrounding the optimal number of funds in the private capital portfolio, the selection of top performing fund managers, and the identification of the most promising regions in which to invest.