Getting responses to questionnaires is an art and I can’t say I master it. Nevertheless, I had a few especially kind readers of my previous post who contributed their opinion (thanks!) to the embedded polls. Their results make it more interesting and “independent” to define “surprising” certain different data available in the industry. Continue reading
Duration adjusted Return on Capital
The PE S-Curve, Dug Out
There are a couple of concepts that qualify a discovery – even if just stumbled upon: novelty and usefulness. With respect to private equity, the S-Curve adds the notion of decreasing marginal returns to improve the mainstream J-Curve notion, and this clears novelty. What’s left now is to dig out its usefulness. Continue reading
The PE S-Curve, Stumbled Upon
Unexpectedly last week, I stumbled upon an S-Curve hidden between the lines of a study released by an established private equity funds of funds firm with a cautious introductory question: “do private equity funds sometimes just run out of steam?” Continue reading
IRR Is Like Fish
IRR is like fish, when someone gets hold of it, it slips away. Hard to seize, hard to terminate – with incredible survival instinct, it tries to jump out of any bucket where it has been secluded. Continue reading
Coller’s IRR Card [More Subtly Fooled #2]
If there’s an iconic badge for private equity valuation this is probably Coller Capital’s IRR and compound interest “cheat sheet” Card. Continue reading
Putting the [α + β-Cen] Reports into Context
On monday night, earlier this week, Carlyle announced preliminary data regarding its funds’ first quarter valuations. Continue reading
Introducing the [α + β-Cen] Reports
I am pleased to introduce first issue (number 0 in beta) of the [α + β-Cen] Reports whose objective is to provide “rational and quantitative” valuation indications and forecasting references to private markets’ fund investors. Continue reading
Riding Private Markets’ S-Curves
As I write about interpreting and predicting private markets’ returns, for the readers who missed one of my previous posts, I confirm there is no misspelling in the headline, it’s an S. Continue reading
Relativity Theory, Money-Time Curvature and Private Capital Pricing
Wonder what relativity theory and money-time curvature have to do with rational pricing of private capital? The two quotes below, freely adapted from the Wikipedia pages about space-time and reference frame, may give a hint. Continue reading
Volatility Inhibits PME’s Meaningfulness
A recent post that summarises most of the history of the post-IRR performance calculation and valuation methodologies for the private capital industry has been written by Mr. Jesse Reyes, widely regarded as one of the leading experts of the field. Continue reading