Client: Asset Owner

INTRODUCTION Our previous papers in the asset owner series dealt with a variety of topics in the performance value chain. The first paper discussed valuation challenges posed by higher allocations to private markets, external asset management, and managing multiple books of record. Our second explored multiple return methodologies to provide meaningful performance returns. In the

In the first paper of our asset owner series, we explored the unique business drivers, valuation methodologies, and considerations for private market and external manager processing. Now, in our second installment, we shift our focus to returns and benchmarks.
Asset owners often invest across a diverse mix of private and public market asset classes. But should the same return methodology be applied to both the asset class and the total fund level? Are there acceptable deviations?
Sophisticated benchmarking capabilities are essential for accurately consolidating returns at the total fund level. The complexities of substitution and benchmark specific overrides present challenges driven by various underlying factors. What are these factors, and how can best practices help overcome these challenges? Read on to discover our perspectives and practical solutions