The Art of Commitment Pacing: Engineering Allocations to Private Capital

Advanced guidance for institutional investors, academics, and researchers on how to manage a portfolio of private capital funds.

The Art of Commitment Pacing: Engineering Allocations to Private Capital provides a much-needed analysis of the issues that face investors as they incorporate closed ended-funds targeting illiquid private assets (such as private equity, private debt, infrastructure, real estate) into their portfolios. These private capital funds, once considered 'alternative' and viewed as experimental, are becoming an increasingly standard component of institutional asset allocations.

However, many investors still follow management approaches that remain anchored in the portfolio theory for liquid assets but that often lead to disappointing results when applied to portfolios of private capital funds where practically investorsremain committed over nearly a decade.

When planning for such commitments, investment managers and researchers are faced with practical questions such as:

• How to measure and control the real exposure to private assets?
• How to forecast cash-flows for commitments to private capital funds?
• What ranges for their returns and lifetime are realistic, and how can the investor's skill be factored in?
• Over which dimensions should a portfolio be diversified and how much diversification is enough?
• How can the impact of co-investments or secondaries be modelled?
• How to design pacing plans that lead to resilient and efficient portfolios?
• What stress scenarios should be considered and how can they be applied?

These are just examples of the many questions for which answers are provided. The Art of Commitment Pacing describes established and new methodologies for building up and controlling allocations to such investments.This book offers a systematic approach for building up and controlling allocations to such investments.

The Art of Commitment Pacing is a valuable addition to the libraries of investment managers, as well as portfolio and risk managers involved in institutional investment. The book will also be of interest to advanced students of finance, researchers, and other practitioners who require a detailed understanding of forecasting and portfolio management methodologies.

《承諾節奏的藝術：管理私募資本基金投資組合的高級指南》是專為機構投資者、學者和研究人員提供的指南，教授如何管理一個私募資本基金投資組合。

本書對投資者在將封閉式基金（如私募股權、私募債券、基礎設施、房地產等）納入投資組合時面臨的問題進行了必要的分析。這些私募資本基金曾被視為“另類”並被認為是實驗性的，但現在已成為機構資產配置中越來越常見的組成部分。

然而，許多投資者仍然遵循針對流動性資產的投資組合理論，而這些理論在應用於私募資本基金投資組合時往往會導致令人失望的結果，因為投資者實際上需要長達十年的承諾期。

在規劃這樣的承諾時，投資經理和研究人員面臨實際問題，例如：

- 如何衡量和控制對私募資產的真實暴露？
- 如何預測對私募資本基金的承諾現金流？
- 什麼範圍的回報和壽命是現實的，投資者的技能如何納入考慮？
- 投資組合應該在哪些維度上進行多樣化，多樣化程度如何足夠？
- 如何建模共同投資或二級市場的影響？
- 如何設計能夠產生強韌和高效投資組合的節奏計劃？
- 應該考慮哪些壓力情景，如何應用它們？

這些只是提供答案的許多問題的例子。《承諾節奏的藝術》描述了建立和控制此類投資配置的既有方法和新方法。本書提供了一種系統化的方法，用於建立和控制此類投資配置。

《承諾節奏的藝術》是投資經理、投資組合和風險經理以及從事機構投資的人士的寶貴資料。本書還對金融高級學生、研究人員和其他需要詳細了解預測和投資組合管理方法的從業人員具有吸引力。