Modelling Avenues into Private Capital
Thomas Meyer · 2024
This chapter deals, from the institutional investor's perspective, with the important avenues into private capital and how to model them. It focuses on how to model these avenues within the context of commitment pacing. Primary commitments are the ‘plain vanilla’ approach to private capital investing for which the TAM has been conceived. The chapter discusses the parameters for modelling fund strategies. For institutional investors, the most relevant approach to investing in private capital is through fund-of-funds (FOF) specialists as intermediaries or through similarly structured dedicated in-house private capital investment programmes. The chapter also discusses co-investment strategy, where limited partners invest directly into a private asset that is backed by the funds where they participate, and side funds which are investment vehicles designed to increase the follow-on investment capabilities of an original fund with whom the side fund will invest in parallel.