Private Markets Portfolio Construction
Constructing and managing a private markets portfolio to withstand market cycles is a challenge for Limited Partner (LP) organizations. ILPA has developed a suite of resources to help LPs: optimize portfolio construction and commitment pacing; monitor private equity portfolios; establish LP friendly legal provisions; and adapt to the covid-19 crisis. View webinars, events and summary documents below to learn more.
ILPA members have indicated a range of experiences with the pace of capital calls since the onset of the COVID-19 crisis, with mixed visibility into whether calls relate to prior deals, new opportunities in the current environment, or shifts in the use of subscription lines.
Cashflow and Commitment Modeling Findings
Summarizing the results of a member survey and numerous targeted member conversations, this resource examines shared challenges and potential solutions that LPs face when using cashflow models today.
As LPs contemplate the impact that the pandemic may have on their existing portfolios, they are also eager to take advantage of opportunities that will emerge in the 2020-2021 vintage years
The lack of a consistent methodology for the valuation of private assets has created additional uncertainty. LPs need to be able to validate the value of their portfolio’s as well as understand key drivers of value and underperformance, to make informed portfolio construction decisions.
ILPA members are beginning to examine exactly how COVID-19 will impact their underlying investments and how liquidity and other concerns could play out in their private markets portfolios
Many LPs continue to evaluate what changes will be necessary to their investment protocols and strategies over the near to medium term, chiefly to ensure they don’t miss out on attractive vintages and opportunities during these uncertain times.
The session examined communications best practices, valuation conversations, engagement with portfolio companies, and changing GP tactics to protect the portfolio and capitalize on new opportunities.