Supporting private assets investment decisions with PEARL’s performance measurement and attribution

Measuring the performance of private assets can be challenging due to comparatively infrequent and untimely valuation data.

With full flexibility to generate an internal rate of return (IRR) on an unhedged, virtually hedged, and local currency basis, PEARL can help asset owners and managers integrate private and public assets to calculate returns on any fund level and create a multi-asset class attribution analysis.

Understand the contribution of private assets to total fund performance. Access an enhanced approach to integrating private assets into performance measurement and attribution.

Interpolate valuations from last available data or using a proxy, such as a designated benchmark return

Import and automatically process backdated transactions, valuations and benchmark data

Generate multiple datasets to assess the impacts of valuation time lags

Optimize validation processes to align with availability of data points

Establish interfaces with private asset platforms to integrate look through data on PE investments and relevant benchmark universes

Develop benchmarks
Determine opportunity cost by using an illiquidity premium benchmark

Obtain portfolio and asset class-level analytics
Calculate investment and realization multiples for individual portfolios and at any aggregated level, such as asset class

Access deep insights
Evaluate various metrics including Total Value to Paid-In capital (TVPI), Distributions to Paid-In capital (DPI), and Residual Value to Paid-In capital (RVPI), on a net or gross fee basis

Benchmark performance
Compare performance against multiple benchmarks, including a suitable Public Market Equivalent (PME) that comes in different variants, and Direct Alpha

Attribute decisions
Compare commitment allocations with private asset universe data to break down outperformance into a series of allocation decisions and manager alpha effect

Webinar: Private asset performance attribution to effectively analyze investment decisions

• Learn how performance measurement and attribution frameworks can be adapted for private assets in this 30 minute webinar, as part of our Private assets in focus: Navigating investment decisions series.

Access the recording

Climate scenario analysis

Pacing & liquidity risk

Risk & return scenario modelling