Tech & Evolving World of Alternative Asset Management!

PE Performance on Excel- Rocks You Like a Hurricane! For a Private Equity Fund like any other business Performance Measurement remains the key focal point apart from other important aspects of business like raising the fund, valuations, deal making, compliances etc. It is important for both, the GP’s who would like to choose upon the metric which can project the fund as top quartile and for the LP’s who would like to dig with other metrics to reach to the actual evaluation of their investments and returns, for their investment decisions! The fund performance evaluations hold an equal interest with investment advisers who would be interested in knowing more than just the performance of a particular project but would be interested in comparing these investments with other funds which bring in the complexity as there are challenges like comparing an apple to apple to reach a logical conclusion. The challenges arise due to the size of the different projects being compared, geo

Valuations - 😟 Had Always Been Worrisome!  O ne of the biggest challenges in Asset Management is to arrive at the fair market price of the portfolio and the assets that are being invested in. This challenge multiplies as the portfolio becomes more illiquid with few reliable sources of valuation data. Some of the biggest fund failures over the last few years like the Third Avenue Asset Management collapse have been attributed to badly mispriced securities.  In the aftermath of 2008 financial crisis Valuations of securities at Funds has been in focus with investors and regulators. Investor due diligence increasingly focuses on valuation policies, processes and models. Regulators across the globe have focussed on Valuation processes and increased their oversight of how assets are being valued. A big learning from the 2008 financial crisis was how lax some of the valuation processes had been with even the larger banks which created knock-on effects up and down the fina