By Erick Podwill
Private equity investors are familiar with the “denominator effect,” where fluctuations in broader portfolios influence private equity allocations. However, current market conditions, specifically declining distributions resulting in larger-than-expected unrealized portfolios, have created a related but different chall…
By Erick Podwill
The j-curve has been a familiar concept for private equity investors and textbooks for decades, as it has been understood that fund performance will be materially negative for several years before eventually turning positive. This blog post seeks to address whether the relevance of the j-curve is outdated in the contex…
By Erick Podwill
General Partner (“GP”)-led secondaries in private markets have exploded in popularity over the past few years on the basis of both deal count and aggregate deal volume. This blog post discusses the increase in volume, how continuation funds are typically structured, and commentary on the positive and negative attribute…
By Erick Podwill
Canterbury frequently receives client questions about the risk/return profile of private capital sub-strategies. While there are many ways to approach the question, this blog post uses the range of returns between top and bottom quartile funds as well as standard deviation to provide context.
By Erick Podwill
Special Purpose Acquisition Companies (SPACs) have skyrocketed in popularity over the past 18 months. This post explores what SPACs are, the history of SPACs, and some of their positive and negative attributes.
By Erick Podwill
The equity markets have entered a downturn due to the COVID-19 situation, with the S&P 500 down 31.9% from its peak as of market close on March 20, 2020. How should investors think about allocating to private equity at this time? Furthermore, how have the private markets fared during past downturns? This blog seeks to…
By Erick Podwill
In private equity fund of funds, investors commit to a fund, which in turn makes commitments to a predetermined number of underlying funds. Investors achieve diversification through exposure to a high number of funds, and in turn a high number of companies, with just one commitment. This article seeks to analyze the pe…
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…
