The Solution: A data-led selection process
The first stage of the competition involved writing an investment policy statement. Once this had been submitted, the team were required to put together a full portfolio, hitting certain criteria, along with certain financials and metrics incorporating ESG goals for impact. To construct a compliant and accurate portfolio, the team needed access to key information on alternative investment prospects, and that’s when they turned to Preqin.
Using Preqin Pro’s advanced search function, the team searched funds by their criteria, their strategies, and their performance. This enabled the students to narrow down opportunities based on annualized returns, IRR, management fees, performance fees, and maximum drawdowns.
Equipped with this information, the team were able to build a highly focused portfolio of 10 private funds. This evaluation process was conducted using Preqin’s league tables, so the team could get a sense for who the top performers were at the time. They also analyzed Preqin’s historic performance data from fund inception, then filtered by the key metrics so they could focus on the funds matching their criteria.