Measuring and managing liquidity risk have become important factors in the portfolio construction and asset allocation process. Even investors with the longest time horizon, such as pension funds and endowments, have come to realize that liquidity risk can have a devastating impact on the long-term performance of their portfolios. As a result, investors are reevaluating the costs and benefits of allocating to illiquid investments; in general demanding a higher level of benefits (e.g. return, diversification) in order to justify increased allocation to such products.