(Financial Times) Private markets don’t ‘launder volatility’, honest

The Financial Times said they’ve been "mean about fantastical marking of private capital in the past" and so asked Cyril Demaria, affiliate professor at EDHEC Business School, "to write a defence of the industry’s practices". This column starts like this: "Last October, Narv Narvekar of Harvard’s $51bn endowment said private market funds did not reflect “general market conditions” and warned of “substantial markdowns” to come. AQR’s Cliff Asness has gone even further, and argued that private market funds are “volatility laundering” their valuations. Are all the critics right that private capital is a game of self-serving, reality-defying make-believe? No. The critics are missing some crucial dimensions of private market investing (though the fault mostly lies with private capital fund managers, who should be a lot more transparent)..."

• To read this column : follow this link
• To know more about Cyril Demaria : follow this link