Limited partners (LPs) face a variety of challenges—from a lack of transparency into the funds landscape to complex allocation processes to time and resourcing constraints. These roadblocks can sometimes negatively impact potential returns.
So how can you be sure you’ve made the right allocations at any given time? This guide explores considerations for addressing four allocator workflow challenges. Learn how you can use data-driven insights to uplevel your investment strategies. In a changing market environment, access to trusted research, benchmarks, and portfolio allocation tools can help LPs make stronger investment decisions.
What’s inside
- How to optimize your allocations across strategies
- How to account for shifting markets by contextualizing fund performance
- How to use cash flow modeling to reduce uncertainty and increase efficiency
- How to source high-caliber fund managers with quantitative assessments of fund family performance consistency
Why do allocators need complete data transparency
In a fluctuating market, LPs need trusted information to make the best long-term investments and fulfill their mandates. PitchBook’s relevant fund and portfolio company data provides insight into returns, underlying investment characteristics, deal sizes, cash multiples benchmarks, and institutional-grade research.
All of this supports allocators in efficiently sourcing new opportunities and evaluating portfolio performance. The transparency and breath of our datasets help LPs improve every step of their workflow.
How PitchBook can help
Unlock fund-level visibility
Our fund-level transparency helps allocators easily identify the right data at the right time. PitchBook’s granular information on funds empowers LPs to easily pinpoint important details across thousands of fund profiles including profiles for hedge funds, interval funds, BDCs, non-traded REITs, impact funds, and more.
Portfolio look-through analysis
Our platform enables investors to conduct meaningful look-through analysis of underlying investments. By utilizing market intelligence across sectors, geographies, and securities, LPs can thoroughly assess potential risk exposure.
Agile liquidity planning
A sound liquidity framework is essential for effective risk management. Understanding a portfolio’s expected and future cash flows requires sophisticated modeling utilizing historical data and insights into market conditions to inform commitment pacing.
That’s why we created Portfolio forecasting—a tool that automates cash flow forecasting with customizable data and analysts. Investors can run hypothetical forecasts using the Monte Carlo simulation and Capital Call at Risk Analysis to anticipate shifts and plan future commitments.
Custom Benchmarks—your smart starting point
Our platform delivers curated benchmarks across private market asset classes and fund strategies so LPs can easily discover the right benchmark and better assess the performance of other portfolios and fund manager prospects. We help LPs refine strategies with granular fund performance data, including IRR, Horizon IRR, TVPI, quartile ranking, and more.
