UniFi by CAIA Crossing the Threshold - 35

Ideally, the conversation around private markets exposure in the portfolio is both
prescriptive and nuanced depending on the type of investment strategy and the structure.
For example, for a drawdown vehicle with a multi-year investment period, the conversation
in the first few years should center on the market environment for the strategy, reminding
investors each time capital is called of why the strategy makes sense. The second phase
likely has some specific deals to be discussed; not only can this be an opportunity to
highlight more quantitative metrics, but it also gives another opportunity for education
and engagement on the benefits of investing in a particular strategy. As investments are
realized and capital is returned, it is important to provide an assessment of the strategy
and its performance, tying back to the original thesis and highlighting learnings from these
events that are applied to the next fund.
While these conversations may vary depending on the underlying alternative investments
in use, the need to continue to ensure understanding and alignment is consistent. For many
investors, getting off of zero can be an important first step to improving portfolio outcomes
over time, but the momentum can quickly dissipate if the exposures are not included
in the ongoing dialogue. In addition, for many investors, ongoing education around the
opportunities within alternatives creates a level of interest in expanding their initial, likely
small, allocations to private markets to include strategies that may reflect new areas of
opportunity-which can improve their chances for success in achieving their goals.
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UniFi by CAIA Crossing the Threshold

Table of Contents for the Digital Edition of UniFi by CAIA Crossing the Threshold
