The team worked with the client to understand their portfolio, including:
We examined trade-offs between private equity returns and the respective costs of reduced liquidity in the client’s portfolio. Furthermore, we modeled the volatility implications of different asset allocation scenarios to help the client understand the potential impact to their balance sheet in the event of crisis-like macroeconomic conditions.
We performed the following analyses:
We demonstrated trade-offs to help the client understand the interaction between target liquidity, volatility and return:
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