Learning private equity recommitment strategies for institutional investors
Keeping strategic allocations at target level to maintain high exposure to private equity is a complex but essential task for investors who need to balance against the risk of default. Illiquidity and cashflow uncertainty are critical challenges especially when commitments are irrevocable. In this w...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Frontiers Media S.A.
2023-02-01
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| Series: | Frontiers in Artificial Intelligence |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/frai.2023.1014317/full |
| _version_ | 1811170250327064576 |
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| author | Emmanuel Kieffer Thomas Meyer Georges Gloukoviezoff Hakan Lucius Pascal Bouvry |
| author_facet | Emmanuel Kieffer Thomas Meyer Georges Gloukoviezoff Hakan Lucius Pascal Bouvry |
| author_sort | Emmanuel Kieffer |
| collection | DOAJ |
| description | Keeping strategic allocations at target level to maintain high exposure to private equity is a complex but essential task for investors who need to balance against the risk of default. Illiquidity and cashflow uncertainty are critical challenges especially when commitments are irrevocable. In this work, we propose to use a trustworthy and explainable A.I. approach to design recommitment strategies. Using intensive portfolios simulations and evolutionary computing, we show that efficient and dynamic recommitment strategies can be brought forth automatically. |
| first_indexed | 2024-04-10T16:53:53Z |
| format | Article |
| id | doaj.art-2eb3a66f9020457093127229cd86772e |
| institution | Directory Open Access Journal |
| issn | 2624-8212 |
| language | English |
| last_indexed | 2024-04-10T16:53:53Z |
| publishDate | 2023-02-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Artificial Intelligence |
| spelling | doaj.art-2eb3a66f9020457093127229cd86772e2023-02-07T09:01:09ZengFrontiers Media S.A.Frontiers in Artificial Intelligence2624-82122023-02-01610.3389/frai.2023.10143171014317Learning private equity recommitment strategies for institutional investorsEmmanuel Kieffer0Thomas Meyer1Georges Gloukoviezoff2Hakan Lucius3Pascal Bouvry4Faculty of Science, Technology and Medicine, University of Luxembourg, Esch-sur-Alzette, LuxembourgSimCorp Luxembourg SA, Luxembourg, LuxembourgEuropean Investment Bank, Luxembourg, LuxembourgEuropean Investment Bank, Luxembourg, LuxembourgFaculty of Science, Technology and Medicine, University of Luxembourg, Esch-sur-Alzette, LuxembourgKeeping strategic allocations at target level to maintain high exposure to private equity is a complex but essential task for investors who need to balance against the risk of default. Illiquidity and cashflow uncertainty are critical challenges especially when commitments are irrevocable. In this work, we propose to use a trustworthy and explainable A.I. approach to design recommitment strategies. Using intensive portfolios simulations and evolutionary computing, we show that efficient and dynamic recommitment strategies can be brought forth automatically.https://www.frontiersin.org/articles/10.3389/frai.2023.1014317/fullprivate equityevolutionary learningrecommitment strategiesartificial intelligenceoptimization |
| spellingShingle | Emmanuel Kieffer Thomas Meyer Georges Gloukoviezoff Hakan Lucius Pascal Bouvry Learning private equity recommitment strategies for institutional investors Frontiers in Artificial Intelligence private equity evolutionary learning recommitment strategies artificial intelligence optimization |
| title | Learning private equity recommitment strategies for institutional investors |
| title_full | Learning private equity recommitment strategies for institutional investors |
| title_fullStr | Learning private equity recommitment strategies for institutional investors |
| title_full_unstemmed | Learning private equity recommitment strategies for institutional investors |
| title_short | Learning private equity recommitment strategies for institutional investors |
| title_sort | learning private equity recommitment strategies for institutional investors |
| topic | private equity evolutionary learning recommitment strategies artificial intelligence optimization |
| url | https://www.frontiersin.org/articles/10.3389/frai.2023.1014317/full |
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