This conference brings together leading private markets allocators, consultants and fund managers who focus on private equity, private credit, growth equity, and venture capital to learn how they select winners, add value and deliver returns. Our speakers will discuss their experiences with investment in private companies and funds, the management of their portfolios, fundraising efforts, and their future expectations.
With the right set of skills, experience, and focus, managers can capitalize on some of the information asymmetries that exist in private markets. Managers with industry knowledge, networks and experience have strategic and operational insights that can help improve company returns.
The primary goal of any successful private investment program is to serve as a meaningful return driver for the total portfolio. According to Cambridge Associates, private investments – particularly private equity (PE) and venture capital (VC) – have provided the strongest relative returns for decades, and top-performing institutions have been long-time allocators to private investment strategies, reaping the benefits of that out performance.
Cambridge Associates’ past analysis indicates that endowments and foundations in the top quartile of performance had one thing in common: a minimum allocation of 15% to private investments. Top decile performers have steadily increased their private investment allocations over the past two decades, in many cases to more than 40%of their portfolio in private investments.
These investors must be comfortable with the long time horizon, illiquidity, and complexity inherent in higher private investment allocations. It takes time and skill to build a robust private investment program, and manager selection is crucial as private investment returns vary widely.