Capitalising on institutional co-investment platforms

Co-investment is often perceived as referring to institutional investors investing alongside their external asset managers in companies, but increasingly it refers to investment responsibilities being shared among peer investors, as long-term institutional investors are forming co-investment partnerships with the specific objective of deploying capital collaboratively into attractive investment opportunities.

These collaborative partnerships seem to be an important means of capitalising on an investor’s network.

This paper, by academics at Stanford, identifies and analyses examples of the new collaborative investment vehicles being employed by institutional investors to access private market assets.

In so doing, this paper tracks the initial development of a growing trend among institutional investors towards more efficient ways of long-term capital deployment.

 

To access the paper click below

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Capitalising on institutional co-investment platforms

 

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GIC, Temasek eye trillions of growth in climate adaptation market

GIC, Temasek eye trillions of growth in climate adaptation market

Singapore’s two largest asset owners, GIC and Temasek, see attractive opportunities in climate adaptation solutions – a relatively underfunded area compared to decarbonisation. The former has already made selective adaptation investments and said the opportunity set across public and private debt and equity could increase to $9 trillion by 2050.

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Academics from the London Business School, Boston College and Temple University, examine the outperformance of US public companies following corporate social responsibility engagement.

Capturing illiquidity premiums

This paper commissioned by the Norwegian Ministry of Finance investigates the possibilities for the Government Pension Fund Global (GPFG) to profit from liquidity premiums in  illiquid investments. It looks at the empirical evidence for the presence of liquidity effects in a broad range of asset classes: listed equities, corporate bonds, treasury and agency bonds, and

A trustee guide to factor investing

This research by academics at Tilburg University and the VU University Amsterdam, looks at the hurdles of implementing factor investing. It translates those into a checklist for implementing factor investing. The research, conducted for Robeco, finds that three approaches to factor investing are emerging and conducts case studies to examine how these approaches are implemented

Manager risk contribution in a multi-manager portfolio

This paper by MSCI creates a framework in order to answer the question: given a portfolio of managers, how does the active risk of each manager relate to the active risk of the portfolio? Asset owners often measure manager risk (the active risk of each manager) and have difficulty relating it to the contribution each

How active is your real estate fund manager?

Using detailed data from IPD, this paper looks at the holdings and performance of 256 UK commercial real estate funds from 2002-2011. It concludes the more active funds, those further from benchmark holdings, outperform but are not accompanied by higher risk.   To access the paper click here How active is your real estate fund

Persistently high equity risk premium unprecedented

This paper by the Federal Reserve Bank of New York looks at the equity risk premium information from 20 models and estimates the ERP for various time periods. Extraordinarily it finds that the (preferred) estimator places the one-year equity premium in July 2013 at 14.5 percent, the highest level in 50 years and well above the

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