Model Insight - The Barra Private Equity Model (PEQ2) - August 2014

Aug 28, 2014

In this Model Insight, we present the latest Barra Private Equity Model (PEQ2), which represents a major advance in understanding the drivers of risk and return in global private equity. We find a high degree of systematic risk in private equity, but also large opportunities for global diversification and active risk when compared with public equity. Incorporated in the Barra Integrated Model, PEQ2 provides a unique, like-to-like view of private equity investments among all asset classes – global stocks, bonds, commodities, currencies, volatility futures, hedge funds and private real estate – and enables consistent asset allocation and risk management decisions spanning the full portfolio.