2022 Level I: As capital formation has shifted increasingly towards private markets, we’ve deepened our coverage of the venture capital and buyout lifecycle, including valuation techniques and exit strategies for portfolio companies (e.g., direct listing, special purpose acquisition companies, initial public offerings, and other private market transactions). Additionally, we’ve added coverage of venture debt, an increasingly used method of financing for founders.
The way in which institutional investors access private capital has evolved. While a single fund limited partnership (LP) structure remains the most common method of exposure, sophisticated investors have increasingly opted to invest directly into portfolio companies without an intermediary, and new investors have gained exposure through a fund of fund structure.
2022 Level II: Due diligence has always been an important skillset for the best allocators of capital, and quantitative factors, while important, only provide part of the picture when conducting investment or operational due diligence. As a result, we’ve increased our coverage of some key qualitative factors an investor should assess when performing due diligence on an investment manager. We’ve also added coverage on the characteristics an investor might consider when performing due diligence on managers with no or limited performance track records.
In recent updates, we’ve also added coverage of environmental, social, and governance (ESG) applications in alternative investments. The new material covers a history and overview of ESG investing and how it can be applied in private equity, real assets, and hedge funds.