June 2, 2020
Diligence in a Digital World
In the current economic environment, filled with uncertainty stemming from the COVID-19 outbreak, LPs are even more focused on thoroughly diligencing new investments to make the most informed decision. Historically, a traditional diligence process relied on in-person meetings to get a better understanding of the company, financial portfolio and track[...]
May 22, 2020
Chart of the Month: Updated Q4 Benchmarks
During these unprecedented economic times due to COVID-19, we remain dedicated to providing the most updated content. We're proud to offer direct access to Hamilton Lane's most recent benchmark data, updated through Q4 2019. Leverage the updated Q4 benchmarks to quickly analyze your portfolio and access industry-level insights. See below[...]
April 24, 2020
Chart of the Month: Historic Recessions in the Private Markets
When we think about the potential impact of a recession on the private markets, we thought it best to look at cash flow behavior during historic recessions. Continue reading to understand the net cash flows, contribution rates and distribution rates during prior recessionary periods. Net cash flows are generally negative[...]
April 14, 2020
Downside Protection in the Private Markets
As investors, we’re presented with lots of compelling reasons to commit to a fund. One line LPs consistently hear is that they should invest with a particular general partner because it protects the downside better than anyone else does. But, something we’ve been pondering, does this downside protection matter? Do[...]
April 2, 2020
GP to GP Deals in the Private Markets
Historically, GPs would exit a deal through an IPO. However, in today’s environment, most deals are too small for IPO. Therefore, GPs are exiting a deal by selling to another GP – also called a GP to GP deal. The number of these deals has risen substantially since 2010. Furthermore,[...]
March 27, 2020
Chart of the Month: IRR by Vintage Year and Strategy
Understanding Historic IRR by Vintage Year within the Private Markets When we look at historic IRR by vintage year, private equity funds have the highest returns in each of the past ten vintage years. Historically, private equity has higher returns relative to credit and real assets because it is a[...]
March 23, 2020
Deal Level Benchmark – Updated through Sept 30, 2019
Cobalt LP has just updated our deal level benchmark through September 30, 2019. Leverage this updated benchmark in the following ways and more: During diligence, compare a manager's historic acquisition multiples at entry to the broader market Dive deep across four layers of GICS to access multiples specific to the[...]
March 16, 2020
Private Markets Performance
Investors in the private markets are typically focused on private markets performance in two ways: How have the private markets performed? How does that performance compare to the public markets? Using Cobalt LP’s benchmark and industry-level data, we’re able to take a look at both of these areas. Private Markets[...]
February 25, 2020
Measuring Risk in Private Equity
We have all heard the comment that your private equity portfolio is riskier than your public equity portfolio. But, is this true? How do you even measure risk in private equity? Glad you asked. We, at Cobalt, think of measuring risk in private equity in two ways: versus short-term Treasuries[...]
February 21, 2020
Chart of the Month: IRR by Time Horizon and Strategy
When we view historical IRR by time horizon and strategy, we see that in the most recent quarter, private credit was the only negative returning strategy. YTD, the public markets have outperformed the private markets. However, private market strategies should be viewed over several years rather than just short-time horizons.[...]
