Skip to main content

Main menu

  • Latest
  • Issues
    • Current
    • Published Ahead of Print (PAP)
    • Archive
  • About
    • Journal Information
    • Editorial Board
    • About IIJ
  • Information for
    • Advertisers and Sponsors
    • Agents
    • Authors
    • Institutions
  • Events
  • Videos
  • Institutional Investor Journals: Home
    • The Journal of Alternative Investments
    • The Journal of Derivatives
    • The Journal of Fixed Income
    • The Journal of Index Investing
    • The Journal of Investing
    • The Journal of Portfolio Management
    • The Journal of Private Equity
    • The Journal of Retirement
    • The Journal of Structured Finance
    • The Journal of Trading
    • Practical Applications
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter
  • Visit IIJ on Facebook

User menu

  • Register
  • Subscribe
  • My folders
  • My alerts
  • Log in

Search

  • Advanced search
The Journal of Wealth Management
  • Institutional Investor Journals: Home
    • The Journal of Alternative Investments
    • The Journal of Derivatives
    • The Journal of Fixed Income
    • The Journal of Index Investing
    • The Journal of Investing
    • The Journal of Portfolio Management
    • The Journal of Private Equity
    • The Journal of Retirement
    • The Journal of Structured Finance
    • The Journal of Trading
    • Practical Applications
  • Register
  • Subscribe
  • My folders
  • My alerts
  • Log in
The Journal of Wealth Management

The Journal of Wealth Management

Advanced Search

  • Latest
  • Issues
    • Current
    • Published Ahead of Print (PAP)
    • Archive
  • About
    • Journal Information
    • Editorial Board
    • About IIJ
  • Information for
    • Advertisers and Sponsors
    • Agents
    • Authors
    • Institutions
  • Events
  • Videos
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter
  • Visit IIJ on Facebook
Primary Article

How Large Should Your Commitment to Private Equity Really Be?

J. Heath Cardie, Katherine A. Cattanach and Mary Frances Kelly
The Journal of Wealth Management Fall 2000, 3 (2) 39-45; DOI: https://doi.org/10.3905/jwm.2000.320386
J. Heath Cardie
CFA, is a senior investment officer at Sovereign Financial Services
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
Katherine A. Cattanach
CPA, is managing principal at Sovereign Financial Services
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
Mary Frances Kelly
CFA, is managing principal at Sovereign Financial Services
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • Article
  • Info & Metrics
  • PDF
Loading

This article requires a subscription to view the full text. If you have a subscription you may use the login form below to view the article. Access to this article can also be purchased.

Abstract

The authors start by observing that private equity, as an asset class, has a unique pattern of cash flows which makes it difficult to match an investor's asset allocation target with their actual investments in private equity: Commitments are typically drawn down over a number of years and distributions usually begin coming back before all the capital is called. This makes it difficult for investors to achieve their long-term asset allocation goal in this asset class. They then discuss an investment model that provides a more accurate projection of future private equity exposure based on a number of variables and industry standard cash flows. They show how to plan commitments to private equity based on that model, which was constructed using parameters judged conservative, but realistic for the current and anticipated market environment.

  • © 2000 Pageant Media Ltd

Log in using your username and password

Forgot your user name or password?

Purchase access

You may purchase access to this article. This will require you to create an account if you don't already have one.
PreviousNext
Back to top

In this issue

The Journal of Wealth Management
Vol. 3, Issue 2
Fall 2000
  • Table of Contents
  • Index by author
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Wealth Management.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
How Large Should Your Commitment to Private Equity Really Be?
(Your Name) has sent you a message from The Journal of Wealth Management
(Your Name) thought you would like to see the The Journal of Wealth Management web site.
Citation Tools
How Large Should Your Commitment to Private Equity Really Be?
J. Heath Cardie, Katherine A. Cattanach, Mary Frances Kelly
The Journal of Wealth Management Jul 2000, 3 (2) 39-45; DOI: 10.3905/jwm.2000.320386

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
How Large Should Your Commitment to Private Equity Really Be?
J. Heath Cardie, Katherine A. Cattanach, Mary Frances Kelly
The Journal of Wealth Management Jul 2000, 3 (2) 39-45; DOI: 10.3905/jwm.2000.320386
Permalink:
del.icio.us logo Digg logo Reddit logo Twitter logo CiteULike logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
  • Info & Metrics
  • PDF

Cited By...

  • No citing articles found.
  • Google Scholar

More in this TOC Section

  • The Elusiveness of Investment Skill
  • Asset Liability Management in Financial Planning
  • Measuring the Cost of Risk Reduction in Tax-Deferred Investing
Show more Primary Article

Similar Articles

II Journals
1120 Avenue of the Americas
New York, NY 10036

Stay Connected

  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter
  • Visit IIJ on Facebook

ABOUT US

  • Home
  • About IIJ
  • Nobel Laureates
  • Events
  • Awards
  • Careers

OUR OFFERINGS

  • Guides
  • Permissions and Reprints
  • Digital Archives

GET INVOLVED

  • Advertise or sponsor
  • Publish your work
  • Subscribe
  • Agents

CUSTOMER SERVICE

  • Contact IIJ
  • FAQ's
  • Feedback
  • Publishing Schedule 2017/2018
  • Code of Ethics
  • Subscribe Now
  • Log In

© 2018 Pageant Media Ltd | All Rights Reserved | ISSN: 1534-7524 | E-ISSN: 2374-1368

  • Site Map
  • Terms & Conditions
  • Cookies
  • Privacy Policy