RT Journal Article SR Electronic T1 How Large Should Your Commitment to Private Equity Really Be? JF The Journal of Wealth Management FD Institutional Investor Journals SP 39 OP 45 DO 10.3905/jwm.2000.320386 VO 3 IS 2 A1 J. Heath Cardie A1 Katherine A. Cattanach A1 Mary Frances Kelly YR 2000 UL https://pm-research.com/content/3/2/39.abstract AB 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.