Bridge over ocean
1 May 2012 Financial Analysts Journal Volume 68, Issue 3

Private Equity Recommitment Strategies for Institutional Investors

  1. Gerben de Zwart
  2. Brian Frieser
  3. Dick van Dijk

Institutional investors must deal with irrevocable commitments, cash flow uncertainty, and illiquidity when making new commitments to maintain their portfolio exposure to private equity funds. This study develops a dynamic recommitment strategy to preserve the strategic allocation to private equity. For each period, the level of new commitments is determined by characteristics of the existing private equity portfolio, including received distributions, uncalled capital from old commitments, and the current allocation relative to its target level.

Read the Complete Article in Financial Analysts Journal Financial Analysts Journal CFA Institute Member Content

We’re using cookies, but you can turn them off in Privacy Settings.  Otherwise, you are agreeing to our use of cookies.  Accepting cookies does not mean that we are collecting personal data. Learn more in our Privacy Policy.