- Inflating Returns with Subscription Lines of Credit🔍
- Are Subscription Lines of Credit Still Worth the Cost?🔍
- Subscription lines and private equity| Institutional🔍
- Subscription Lines of Credit and Alignment of Interests🔍
- Enhancing Transparency Around Subscription Lines of Credit🔍
- Subscription Line of Credit🔍
- How Private|Equity Funds Can Artificially Boost Their Returns🔍
- How big is the impact of credit lines on fund performance really?🔍
Inflating Returns with Subscription Lines of Credit
Inflating Returns with Subscription Lines of Credit - MSCI
The increased use of subscription lines of credit by general partners in some private-capital funds has lifted returns by squeezing the ...
Are Subscription Lines of Credit Still Worth the Cost? - MSCI
Inflating Returns with Subscription Lines of Credit ... The increased use of subscription lines of credit by general partners in some private- ...
Subscription lines and private equity- Institutional - BlackRock
A subscription line, also called a credit facility, is a loan taken out mostly by closed-end private market funds, in particular by private equity funds. The ...
The ability to delay calling capital enhances the manager's flexibility to execute deals and shortens the. J-curve, enhancing the fund's Internal Rate of Return ...
Inflated Returns and Impact on Performance Reporting. Because the use of such lines is not universal, the distortive effects on reported ...
Subscription Line of Credit: Benefits, Risks, and Distortions
By Hossein Kazemi, PhD, CFA, CAIA Association, FDP Institute, and Isenberg School of Management A subscription line of credit (SLC) is one ...
How Private-Equity Funds Can Artificially Boost Their Returns
Subscription lines that live for two years can have substantial effects in rankings. The authors found that 44.4% of funds with such lines moved ...
How big is the impact of credit lines on fund performance really?
The takeaways for investors are the following: for fully realized funds, they do not have to worry too much about inflated performance ...
expanding into a broader range of Funds,2 with constantly evolving features ... burden of returning the capital to the investors. Second, Subscription ...
The contentious art of reporting two IRRs - Private Funds CFO
One CFO said that their firm offers LPs the option to use subscription credit lines, and “the majority don't have a problem with it,” adding ...
The (imaginary) loft extension: secrets of subscription lines
... credit to reach their targets or inflate their bonuses. ... Subscription lines in effect also reduce the preferred return hurdle because the IRR is inflated ...
Private Equity: A Deep Dive into Subscription Lines
The higher early IRR from utilizing a credit line can enable a fund to eclipse its preferred return, most commonly 8%, at an earlier stage of ...
The Faulty Metric at the Center of Private Equity's Value Proposition
... subscription credit lines do, in fact, inflate IRRs. “It highlights ways that this performance measure could be distorted,” Denes says.
We find that IRR-based performance for funds using subscription lines of credit ... Subscription lines of credit are adjusted for inflation and ...
ILPA doubles down on transparency around subscription credit lines
A 2019 report from Carnegie Mellon's Tepper School of Business found that subscription credit lines distorted a fund's IRR by 6.1 percentage ...
Proposed SEC Rule Could Chill Private Equity's Performance ... - WSJ
The buyout industry has over the past decade vastly expanded its use of subscription lines of credit, a form of fund-level debt that lets firms ...
OPTIMIZATION OF SUBSCRIPTION LINES OF CREDIT IN PRIVATE ...
E.g., that hedge funds generate abnormal returns on the last day of the quarter and that mutual fund managers inflate quarter-end portfolio values by occurring ...
PREQIN SPECIAL REPORT: SUBSCRIPTION CREDIT FACILITIES
Subscription Lines of Credit and LP-GP. Alignment: ILPA's Recommendations ... as their impact on reported performance and on net returns to LPs. In ...
Subscription-Secured Credit Facilities: Recent Developments in the ...
Fund-level subscription-secured revolving lines of credit are a well-established instrument in the toolkits of a variety of private equity ...
Fund financing: Credit where it's due | abrdn
Importantly, in fund finance, rising yields don't necessarily equate to a deterioration in credit risk. Subscription line loans are largely short-tenor, ...