Quantitative Perspectives: Navigating a Private Capital Portfolio in a Storm

Private capital markets have continued to grow since the depths of the GFC. For LPs that have ever-rising allocations to closed-end funds, that means more cash to manage in the backdrop of a global health crisis that has caused historic damage to the economy. Now, months into the crisis, waters are still murky. In this report, we dive into our benchmarks and private fund cash flow data to provide allocators with insights into how one should think about cash flow needs and potential capital at risk during a crisis. Looking specifically at PE, VC, real estate, and private debt, this report provides a framework that highlights the lessons of the last recession to provide context around the present one.