Hit Enter to Search or X to close

Industry Analysis

Balancing Liquidity Constraints in a Private Investment Program

With an industry-wide explosion of private market allocations, investors are increasingly burdened with liquidity concerns. Idiosyncratic constraints, valuation lags, and market stress add even more complexity. For longevity and profitability, it is paramount that a private investment program maintains balance. Resilient portfolios are built with multiple liquidity levers, and operated by sophisticated investment teams who utilize all available data when making portfolio decisions.

In this article, we discuss:

  • Sources and uses of liquidity in a private investment program  
  • Analytics to consider for liquidity analysis, cashflow forecasting, and exposure management  
  • Impacts of market stress and valuation lags on private investments  
  • Multi-asset class data management best practices