Attracted by the promise of higher returns compared to public markets, institutional investors and asset owners are steadily increasing their allocations to private assets. The shift toward private markets reflects a growing appetite for alternative investments that can offer diversification and long-term performance advantages.
However, assessing and attributing performance within private assets remains a major challenge. Unlike publicly traded securities, private market investments often lack liquidity, standardised valuations, and readily available benchmarks. These factors make it difficult for asset owners to apply traditional performance attribution models effectively.
A recent webinar from Ortec Finance titled ‘Private asset performance attribution to effectively analyse investment decisions’ addressed these challenges head-on. The session explored how performance measurement and attribution frameworks can be adapted to fit the unique characteristics of private markets. It examined how illiquidity impacts performance tracking, the limitations of available data, and the need for tailored approaches to measuring returns and identifying value drivers.
The webinar is part of the five-part series Private assets in focus: Navigating investment decisions, which delves into strategies for analysing private market performance and improving decision-making.
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