Good Risk Governance Pays

Good Risk Governance Pays

Investment Best Practices | Risk Management | Valuation

Category Archives: Venture Capital

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Unicorns, Valuation and the Search for Investment Returns

Posted in Investment Management, Liquidity, Pension, Private Equity, Valuation, Venture Capital
Thanks to Matthew Crow, President of Mercer Capital, for an interesting analysis of regional venture capital trends. In his blog post entitled “Are VC trends the canary in the RIA coal mine?” he points out that valuations in New York, Silicon Valley and Boston are deemed by many as “too high.” As a result, venture… Continue Reading

Automated Investment Management and Fiduciary Liability

Posted in Broker Dealers, Compliance, ERISA, Investment Management, Litigation, Model Risk, Regulation, Venture Capital
As I read about the pros and cons of providing automated investment advice, I am reminded of one of my former financial modeling students. Knee deep in math and not very happy about the hard work ahead, he felt strongly that hiring someone else to do the “grunt” work would leave him free to tackle more… Continue Reading

Institutional Investors Uniting Over Limited Partner Terms

Posted in Disclosure and Transparency, Fiduciary Liability, Hedge Fund, Private Equity, Venture Capital
During a recent trip to London, I had a fascinating discussion with a UK attorney who advises institutional investors on contract terms. One of her admonitions to clients is to negotiate hard with a general partner and embrace the power of the purse rather than accept less favorable terms with respect to fees, transparency and… Continue Reading

Private Equity and Fiduciary Risks

Posted in Fiduciary Liability, Liquidity, Private Equity, Venture Capital
According to “Private Equity Investing in Trust” by Pascal Levensohn (Trusts & Estates, July 2010), professional trustees and family office fiduciaries should exercise caution in evaluating the illiquid nature of private equity and venture capital allocations. Describing initial public offerings (“IPOs”) as “elusive,” Levensohn urges decision-makers to “show the completion of a process of diligent review”… Continue Reading