Morningstar’s Manager Research team has cast its gaze on a newer class of funds that aims to widen investors’ access to private markets. We discuss the process the team plies in doing its due diligence on these funds, their prospective risks and rewards, and the overarching objective of the team’s research—sending clear and actionable signals to investors.
- Morningstar's Manager Research team is developing a process to evaluate semiliquid funds, which offer investors access to private markets like private credit and private equity.
- Key challenges in evaluating these funds include managing liquidity, understanding complex fee structures, and assessing valuation methodologies due to the inherent opacity of private markets.
- The research aims to provide investors with actionable signals, like the Morningstar Medalist Rating, to help them navigate the risks and rewards of these increasingly popular but complex investment vehicles.
Topics: Private market, Institutional adoption, Risk default, Private credit debt funds, Asset manager initiatives, Credit counterparty risk
Tags: #privatemarkets #semiliquidfunds #morningstar #duediligence #liquidity #valuation #leverage #fees #privatecredit #privateequity
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