CHIEF FINDINGS PE funds tend to call only about ⅓ of committed capital during the first 2 years of a fund’s life, which creates a need for sophisticated liquidity planning There is substantial variability in the pace at which PE funds call capital Call pacing appears to strongly vary by fund vintage, with moderate cyclicality […]

Data-Metrics Circularity in PE

ONE-AND-A-HALF FALSEHOODS Many businesses in ‘traditional’ industries are now using data science to rethink how they operate. That’s because data-science tools can empower people at all levels of an organization to make decisions that more closely align with empirical facts, rather than basing choices primarily on past practice, intuition, or best guesses. Put differently: data […]

Launching X-SPEEDS

COMBATTING OPACITY The private equity (PE) industry has an opacity problem. Regulations, incentive structures, norms, and market dynamics in PE all tend to discourage transparency. This in turn limits visibility on how performance varies across the industry, along with operating factors that drive performance. Liquidity management is one such factor for which visibility is especially […]