In the second of this two-part analysis into the deployment of mezzanine and distressed debt funds in the context of the 2008 global financial crisis, we take a closer look at the extent to which such fund types provide diversification within a portfolio of private equity funds. While the following analysis does not seek to be conclusive, it once again demonstrates that the advertised characteristics of different investment types can sometimes obscure important trends and traits that can have a real impact on their risk-return profile and their role within a diversified portfolio of funds.
The difficult macro-economic conditions of recent years provides a helpful testing environment for stressed scenario-building. By harnessing the powerful analytics solutions available from Pevara, this edition seeks to inform investors understanding of distribution patterns from different fund types with reference to ‘distributed to paid-in’ ratios. This is an opportunity for me to encourage you to make the most of this powerful tool and request a demo/free Pevara trial by following the links on the right.
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