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Sep
2019
By Erick Podwill
Private equity managers have increasingly been utilizing subscription lines of credit to manage capital calls from limited partners. This results in a delay of capital called from investors, which increases the fund’s internal rate of return (IRR) while lowering the multiple of invested capital (MOIC) due to interest p…

Aug
2019
By Loren Asmus, CFA, CAIA
On Wednesday, July 31st, the Federal Reserve cut interest rates for the first time since the Great Financial Crisis. The 25 basis point cut was effectively an insurance policy to help quell concerns over the possibility of an economic slowdown, even as the U.S. experiences solid growth. We will discuss the reasons and …

Aug
2019
By Poorvi Parekh, CFA
During the last decade, the “lower rates for a long period” scenario has arrived with mixed blessings for the global economy. Capital has steadily flown into riskier assets, but despite aggressive monetary policies, economic growth has not maintained pace with the appreciation of financial assets. Despite negative yiel…