Alex Ambroz

pensions, endowments, foundations, family offices, outsource CIO firms, consultant firms.

We talk to a lot of allocators and we try to listen to them about what they're interested in, what they're worried about.

And three big ones that have been coming up, two that we hear about a lot and one that we ask about a lot.

The two that we hear about a lot are the lack of distributions and the changing nature of distributions from private asset funds.

Something that's really accelerated in the last...

It's been happening for the last 10 years, but really the last five years.

The second one is the absolute meteoric rise of AI tools generally.

And then specifically for allocators and investors, people who are assessing markets and funds, how can they use AI tools?

And are AI tools going to replace us as investment professionals?

And then the third one, factor model assessment of how their individual funds are doing.

and how they can assess, importantly, the most important question in any fund evaluation process.

Am I paying alpha fees for beta performance?

So that would be distribution as a percent of NAV.

So that gives you distribution yield.

So distribution yield for the portfolio for private assets has hovered very strongly at 20, 25%.

This is data from MSCI Burgess.

So Burgess put out this study to point it out.

Yes, this distribution yield has historically hovered at around 25% or so.

The distribution yield reflects the distributions that you're getting on an annual basis as a percent of the private asset NAV.

For the last four years, that distribution yield, instead of averaging 25%, has averaged 12%.