How Risky Are Private Assets?
Research Paper
January 1, 2022
Preview
Estimating risk in private markets presents a perennial challenge due to factors such as low-frequency operations, irregular cash flows, subjective valuations, and data that is generally opaque. In this paper, we discuss the importance of risk-adjusted returns for asset allocation and present a way to gauge volatility across venture capital, buyout, real estate and debt.
This paper was originally published on Burgiss.com. MSCI acquired The Burgiss Group, LLC in October 2023.
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