Social Sharing
Extended Viewer
How Risky Are Private Assets?
Jan 1, 2022
Estimating risk in private markets presents a perennial challenge due to factors such as low-frequency operations, irregular cash flows, subjective valuations, and data that is generally opaque. In this paper, we discuss the importance of risk-adjusted returns for asset allocation and present a way to gauge volatility across venture capital, buyout, real estate and debt.
This paper was originally published on Burgiss.com. MSCI acquired The Burgiss Group, LLC in October 2023.
Download report
Research authors
- Patrick Warren, Vice President, MSCI Research
- Luis O’Shea, Executive Director, MSCI Research
Related content
Inflating Returns with Subscription Lines of Credit
The increased use of subscription lines of credit by general partners in some private-capital funds has lifted returns by squeezing the timeframe over which returns are calculated. We examine buyout, private-credit and real-estate funds to see where the greatest inflation lay.
Read moreFoul Is Fair, Fair Is Fair: Is Private Equity Rich?
Our analysis using the Burgiss Manager Universe, combined with novel analytics, suggests that venture-capital funds at the end of 2022 were close to fairly valued, and buyout-fund valuations appeared to be in line in with historical norms.
Learn moreIn the Name of Climate: Private vs. Public Funds
In recent years, there has been a surge in climate-related names within both public and private funds, but their focus is often on different areas. We analyze the numbers to identify key trends and provide investors with greater clarity.
Explore more