GEM Private Pacing Methodology

March 06, 2024

Executive Summary

Private investments seem to be everywhere these days. Alternatives specialists, traditional asset managers, and tech platforms are all competing with direct deals or vehicles and strategies with the stated objective of “democratizing” access to what was not long ago a corner of capital markets exclusive to large institutions and family offices. The rationale for private investments within a traditional portfolio construction framework is sound: private investments can—when selected by an expert team with sourcing and underwriting skill—complement and diversify a simple mix of stocks and bonds, potentially enhancing returns and reducing risk. However, as prevalent as opportunities to invest in private markets may be, guidance is limited on precisely how to incorporate those assets into broader portfolios.

In our recent whitepaper, we answer the following:

  1. What’s different about private investments?
  2. Why does allocation discipline matter?
  3. How is a commitment plan crafted?

Read more to learn about optimizing the pacing of annual commitments to reach target private markets allocations, a practice integral to the success of sophisticated investment portfolios.


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