Slower Private Asset Distributions: What Does It Mean for a CIO?
Since 2022, private asset distributions have weakened. Understand how this impacts CIO’s commitment pacing, liquidity risk and asset allocations.
Financial Investigator Article: Is There a Need for a Chief Liquidity Officer?
Given the growth in illiquid asset allocations, good portfolio liquidity management must integrate a fund’s liquidity demands and sources over a long horizon and measure the consequences of large external liquidity demands, especially in adverse markets.
A strong liquidity management role would quantify a fund’s liquidity risk across many scenarios and identify at-the-ready external liquidity facilities.
High-quality liquidity management can enhance portfolio performance by recognizing the opportunity cost of holding too much liquidity.
Reprinted with permission from the Nummer 2 2023 edition of Financial Investigator.
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