Alignment of Interest

Private markets investments will take 'twice as much effort' to generate returns similar to those seen over the past 15 years, says Texas Municipal Retirement System CIO Yup Kim.

A series of unfortunate events in Southeast Asian private equity have conspired with an uncertain macroeconomic environment to inspire greater circumspection around manager selection and deal protections.

As the issue of own capital at risk comes to the fore ahead of the UK October budget, Rami Cassis, chief executive of family-run office Parabellum Investments, argues GPs should be upping their skin in the game.

HarbourVest now quizzes GPs about their views on NAV financing as part of its due diligence, managing director Lydia Hao tells PEI.

Speaking at an event in Hong Kong on Wednesday, the firm's head of APAC private wealth said it is 'critical' that open-end funds are valued frequently enough to assist subscriptions and redemptions.

Smaller managers are under pressure to commit to their own funds as LPs seek stability in a volatile market.

Already a prolific owner of alternatives managers via its balance sheet, global wealth manager AlTi will consider transitioning from LP to GP with the launch of a fund in this space.

Sponsors and management teams need to demonstrate their commitment to the next phase of growth.

Three of PEI’s Women of Influence – Morningside's Tori Buffery, KKR's Saleena Goel and LGT's Martha Heitmann – share their outlook on the GP-led secondaries market.

Adviser estimates put secondaries transaction volume at around $110bn, with GP-led processes accounting for roughly 45% of those transactions.