Taylor tells Thompson, “I recently met with the foundation’s investment committee to review our progress on shifting to alternative investments and the materials we’ve received from general partners in whose funds we’ve invested.”
- The investment committee wants:
- each fund to identify and provide the qualifications of those who have the responsibility and authority to make investment decisions;
- outside experts brought in to provide quarterly updates on market conditions and expectations, with an indication of what sectors of the private equity and private credit markets are most likely to benefit from those expectations; and
- to know what assets are held by each fund at the end of each quarter and how those assets are valued for reporting purposes.
The Nullarbor Foundation’s investment committee’s requests are least likely realistic with regard to:
- fund governance.
- investor expertise.
- transparency and reporting.
Solution
C is correct. Although it is reasonable to expect a private equity or private credit general partner to explain how assets are being valued for reporting (e.g., using independent administrators), full transparency of holdings cannot be expected. Investors in these markets must, to some extent, be comfortable with buying into a blind pool of assets.
老师，这里解释说的意思应该是说AI的透明性是有限的，对吗？不可能做到fully transparent，理由就是AI会涉及到blind pooled investment是不是？
另外解释下B，我不能理解为什么需要外部专家来提供意见？理由是由于投资AI的投资人觉得市场是not efficient market？？
