Venture Capital Outlook

The U.S. venture capital exit market has been slowing but, unlike the buyout market, deal flow is up for both early-stage and late-stage companies. However, venture capital fundraising has been moderating. Perhaps the biggest challenge facing the U.S. venture capital market is the IPO environment. While the IPO market showed some signs of recovery in […]

European Fundraising

Fundraising has been buoyant for several years and, three weeks into 2018, shows no signs of abating. According to Pitchbook, in 2017 EUR77.6 billion was raised by 117 European funds which was lower than the record EUR96.2 billion raised by 140 funds in 2016, but still very high by historical standards. We rigorously track and […]

The 4% Rule: Withdrawal Rates in Review

With the demise of defined benefit plans and ascendancy of defined contribution plans, participants not only must make decisions regarding investment strategy, but also they must decide on a withdrawal strategy once they retire. This can be agonizing especially given evidence that most baby boomers have under-saved for retirement. Retirees will want to withdraw as […]

Demographic: the future is now

Demographics are often thought of as long-term trends, or developments that can be put off or worried about later on. The problem for most advanced economies is that demographic changes are not a long-term issue any more, they are happening now! For example, on average, 10,000 people turn 65 years old every day in the […]

Active vs. Passive Equity

Introduction: One of the most difficult philosophical questions to consider in the traditional equity markets is whether to use “active” or “passive” management. While outperforming the index in efficient market segments can be challenging for active managers, there are market environments in which they should be able to add alpha over their benchmarks. There is […]

What rising rates mean for hedge fund returns after fees

As we continue to migrate towards a world of higher short-term interest rates, hedge funds and other active managers have the potential to capitalize on an environment of increased dispersion in global asset price movements. We have already seen hedge fund alpha begin to improve in certain areas, despite a record level of assets under […]

Private credit: Is now a good time to invest

As we approach the eighth year of economic recovery, headlines abound on whether or not a recession is near and what may cause it. Risk-taking appears to be on the rise not only in the equity markets but also in the credit markets. Identifying these potential risks and how they might impact the prevailing investment […]

Options Abound for Revenue Sharing

There has been much discussion about fees/revenue sharing and how plan sponsors are tackling this issue. Recently, I moderated a panel discussion at the West Coast Defined Contribution Conference in San Diego where panelists examined the complex issues facing plan sponsors as they work through the selection of what investment vehicle/share class is most appropriate […]