This paper introduces our proprietary Private Markets Asset Allocation Framework (PMAAF), designed to help investors think about how to allocate their dry powder across private markets and cycles. PMAAF is a process built on three pillars, outlined below:
- Cycle Indicators: We look at key indicators to assess the attractiveness of private markets and the point in the cycle.
- Scoring and Thematic Matrixes: Our Scoring Matrix is a bottom-up, data-driven framework that provides objective, evidence-based, repeatable and consistent scoring across asset classes and sectors. The framework is complemented by our top-down Thematic Matrix.
- Monitoring: We monitor progress and assess risk for the life of our investments.