There are many reasons for pension plans to consider exposure to liquid alternatives, but the first step is understanding the asset class. Simply, liquid alternatives are alternative assets, such as currency, commodities or emerging market debt, which are available in liquid forms, as well as alternative strategies like long-short investment strategies, says Michael Sager, vice-president […]
Globally, the number of floods has quadrupled since the 1980s and doubled since 2004, which poses risks to both residential and commercial real estate investments. Yet, institutional investors are still struggling to quantify and manage the long-term climate risks to their private real estate portfolios, according to a new report by MSCI Inc. that looks […]
The Ontario Teachers’ Pension Plan is launching a venture incubator called Koru, which aims to create, test and build scalable new digital businesses. “Koru is a clear demonstration of Ontario Teachers’ partnership model of investing,” said Ziad Hindo, chief investment officer at the Ontario Teachers’, in a press release. “It provides us with an entirely […]
Spanish multinational Ferrovial S.A. is appealing an Ontario Superior Court decision that cleared the way for SNC-Lavalin Group Inc. to proceed with the $3.25-billion sale of a stake in the 407 toll highway to the Canada Plan Plan Investment Board. An SNC-Lavalin spokesman said in an email that even if the decision were reversed on […]
Private equity funds’ use of subscription lines of credit has been debated by both researchers and practitioners, specifically because of this form of financing’s impact on internal rates of return. This is because the internal rate of return is a time-sensitive return measure, so if a firm delays its capital calls, it shortens the effective […]
It turns out institutional investors can learn a lot about hedge funds by paying attention to their writing style. In fact, when looking at hedge funds’ strategy descriptions, the sophistication of the text can be telling, according to a new research paper. “It seems that even for sophisticated entities such as hedge funds — that […]
Deeper relationships in the venture capital space actually lead to fewer future co-investments, according to a new working paper out of the Hong Kong Polytechnic University and the University of Oxford. “A lot of people talk about the importance of investors having strong networks, and we thought that this notion of networks is a little […]
BlackRock Inc. is shaking up the private equity industry with a new longer-term approach to the asset class. In April, the firm announced it was ready to start investing its long-term private capital vehicle, which had $2.75 billion in capital committed from cornerstone investors at the time. According to BlackRock, the permanent capital vehicle will […]
With many Asian countries in need of private infrastructure investors, one way to make it more attractive to investors is by sharing some of the additional tax revenue created by these projects, says Naoyuki Yoshino, dean and chief executive officer of the Asian Development Bank Institute. In the past, infrastructure returns were generated from user […]
Private capital funds are increasingly turning to subscription credit facilities, which can have their advantages but also come along with risks, according to new research by Preqin Ltd. Subscription credit facilities provide short-term loans to cover transactional costs for private capital funds, so they don’t have to make capital calls to investors. While their use […]