Private markets commitment pacing and cash flow modeling

Private markets investors are faced with the difficultly of estimating future exposures within their portfolios over a longer time horizon. An effective pacing model designed to manage investor target allocations is a key process for managing exposures accurately. In our current topic of interest, “Private markets commitment pacing and cash flow modeling”, we provide an overview to commitment strategies, maintaining allocations over the long-term and monitoring liquidity risk. All designed to help investors answer questions such as:

  • How should a new private markets investor size and pace commitments to reach target allocations?
  • What future commitments will be needed to maintain private equity exposures?
  • How should investors manage long-term private equity commitment through short-term market volatility across their portfolio?