Core Insights - A new Morningstar report indicates that semiliquid funds do not serve as diversifiers for traditional portfolios, but rather expand clients' overall equity and credit allocations [1] Group 1: Advisor Perspectives - The findings challenge the common belief among advisors that private market allocations provide risk diversification, as highlighted by a 2025 survey where 67% of advisors use interval funds to access private assets [2] - Advisors typically allocate to private debt, real estate, infrastructure, structured notes, hedge funds, and natural resources for diversification, while private equity and digital assets are seen as return enhancers [2] Group 2: Market Transparency Initiatives - Morningstar and XA Investments are working to enhance transparency in the performance of semiliquid vehicles, with Morningstar launching the U.S. Evergreen Fund Indexes to track various fund types [3] - XA Investments has introduced the XAI Interval Fund Index, which monitors 77 interval and tender offer funds [3] Group 3: Investment Horizon and Expectations - To fully benefit from semiliquid funds, investors should commit for a minimum of seven to ten years, despite the liquidity features these funds offer [4] - Investors are advised to expect returns at least 2% above those of public markets to compensate for the illiquidity period [4] Group 4: Performance Evaluation Challenges - Determining how often semiliquid funds deliver expected results is challenging, as over half of interval funds are less than three years old [5] - The perceived performance premiums of semiliquid funds may sometimes be misleading, particularly when higher leverage is involved in private credit funds [5]

Core Insights - PitchBook has launched PitchBook Valuation Estimates, a daily framework aimed at providing a consistent, independent, and data-informed valuation signal for over 15,000 VC-backed companies [1][2] Group 1: Valuation Model - The new model combines machine learning with PitchBook's private-market data, public-market signals, and capital-structure insights to determine valuations [1] - Unlike traditional backward-looking valuations based on financial reports and comparable transactions, this model offers daily valuations by incorporating both public and private market data [2] - The model updates last-known valuations using public and private comparables and includes company-specific indicators such as employee growth and company age [2] Group 2: Integration and Product Development - The valuation model is integrated into the overall PitchBook platform, enhancing its offerings in the private market space [3] - This launch is part of a broader strategy by Morningstar and PitchBook to expand their coverage of private markets, following the introduction of various indices tracking companies transitioning from private to public markets [3][4] - Recent product launches include the Morningstar PitchBook GenAI 20 index, which tracks the 20 largest GenAI companies, and several Evergreen Fund Indexes [4]