Peter Finnerty

Clear policy signals. Strong public-private collaboration. High-quality disclosure. Japan is demonstrating how smart action can transform ambition into tangible investment and resilience. In my Japan Times op-ed, I examine how Japan’s blueprint for transition finance integrates policy direction, corporate accountability, and capital mobilization, creating a model that others can learn from. 🇯🇵 Read the full piece: https://lnkd.in/dgbZHHrS

61

Nir Kaissar, a Bloomberg Opinion columnist, wrote an interesting piece this morning about how planned university endowment sales of private equity stakes might have a big impact on large swaths of the asset management business should transaction prices come in lower than where the assets are currently valued by the sellers. Pension plans and university endowments often have outsized allocations to private equity, and they benefit from the lower volatility of fair value marks in the space. Veterans of public market investing know that this lower volatility, which boosts risk-adjusted returns by lowering the denominator, is mostly an accounting fiction. In the high yield market, strategists like Brad Rogoff used to (might still do it!) divide the market into "Go Go" and "Slow Go" bonds to measure the phenomenon of apparent lower volatility for less liquid bonds. Investors know full well that while prices might look more stable for less frequently traded assets, eventually, lower valuations will bleed into everything, not just on-the-run assets. If you have to sell securities into a down market, you're likely to suffer a bigger liquidity discount on the "Slow Go" investments that you thought were less volatile from their price history. The point is, what matters is where you can transact, not where your marks are. That can lead to a very rude awakening when you have to sell if you have systematically erred by valuing your investments with aggressively low volatility. Kaissar points out that "the big reveal is coming" from the discounts these university endowments might be forced to take on the PE stake sales. And big discounts vs. marks will mean auditors need to look at the entirety of these institutions' PE books, with writedowns impacting far larger swaths of their portfolios than merely the sold assets. He points out something that should be obvious: it's highly unlikely that the S&P 500 is really more volatile than sometimes smaller, more illiquid, and frequently more levered private companies held in PE portfolios. Kaissar suggests examining how fat the tails are for expected returns of PE investments vs. for public markets. He compares quarterly returns from 2007 through 2024 for the S&P 500 to the Bloomberg Private Capital Index. SPX had kurtosis of 1, but the PE index kurtosis for the same period is 7, way over a 3 that Kaissar says indicates swings in value could be more severe than what is implied by historical pricing. This will be interesting to watch! Apologies for the paywall. I will repost a version without it if I find one. #investmentmanagement #assetmanagement #privateequity #privateassets #universityendowments #fattails #kurtosis https://lnkd.in/gPdWPhRp

11

6 Comments

As investors focus on hopes for a deal that bring down tariffs on China (though not back to pre-Liberation Day levels), it’s important to remember how fiscal and trade policy are linked. The Committee for a Responsible Federal Budget released analysis showing how a relatively modest change in US yields would add to the US debt and effectively offset income from tariffs. https://lnkd.in/eetWEqcx

41

5 Comments

L&B White Paper: The Executive Compensation All Stars Link to white paper: https://lnkd.in/eHpckwP3 Welltower (NYSE:WELL) and Iron Mountain (NYSE:IRM) are “All Stars” in REITs generating consistent outperformance to proxy peers. A combination of tailwinds in their core businesses and effective management likely played roles in their strong results. Given significant shareholder value creation we are confident these executives have earned their compensation.

23

Private equity (PE) deal value in Southeast Asia moderated sharply in 2025, reflecting a more cautious investment environment. Total PE deal value declined 43% year on year while deal volumes fell a more modest 12%, indicating sustained deal flow but less megadeals. Read more about Southeast Asia's PE performance in 2025 and outlook for 2026: https://ow.ly/5lqo50YfFAU #PrivateEquity #ShapeTheFutureWithConfidence

64

1 Comment

The SEC Under Paul Atkins – What to Expect for Registered and Private Offerings, Climate-Related Disclosure, Consolidated Audit Trail, Digital Assets, and Agency Re-Organization   Paul Atkins, recently nominated as SEC Chair by President Trump and approved by the Senate Banking Committee, signaled a regulatory approach focused on clarity, efficiency, and depoliticization. Drawing from his prior SEC and TARP roles, Atkins emphasized support for “tailored” regulation over blanket enforcement, favoring fraud-focused actions like insider trading. He expressed skepticism toward climate-related disclosures, criticized the SEC’s limited implementation of the JOBS Act, and advocated for reforms to ease access to public markets and facilitate private offerings through Rule 506(c). While hesitant to increase protections for accredited retail investors entering private funds, he intends to reassess the treatment of foreign private issuers, review the controversial Consolidated Audit Trail, and prioritize establishing a clear regulatory framework for digital assets. Though he doesn’t plan sweeping structural changes, Atkins is expected to push for operational efficiency and agency effectiveness.   https://lnkd.in/e7TiNwWA   #cfosquad CFO Squad LLC

14

2 Comments

🏥 Global Medical REIT Inc Names Mark Decker as CEO & President 📢 Global Medical REIT Inc. has appointed Mark Decker, Jr. as its new Chief Executive Officer and President, effective immediately. He also joins the Board of Directors. Former CEO Jeffrey Busch will remain on the board as non-executive Chairman. 🔑 Key Highlights: 👤 Mark Decker, Jr. brings: 💼 20+ years of real estate and capital markets leadership 🏢 Most recently: Co-lead of net lease strategy at Proterra Investment Partners 🏆 Former President & CEO of Centerspace (NYSE: CSR) – led a major portfolio transformation 💸 Previously: MD & U.S. Group Head of Real Estate Investment Banking at BMO Capital Markets 🎯 His focus: strategic growth, operational excellence & capital markets alignment 💬 Board Quote – “Mark brings strategic vision, deep real estate expertise, and capital markets know-how—key traits for GMRE’s next phase.” – Lori Wittman, Lead Independent Director 💬 From Mark Decker – “I’m honored to join GMRE and excited to begin writing the next chapter of the company’s growth.” 🙌 A Thank You to Jeffrey Busch: * Founding CEO of GMRE * Remains on board as non-executive Chairman * Credited with building GMRE’s strong foundation in the healthcare net lease space 🏢 About GMRE: ✅ Specializes in net-leased healthcare real estate 🩺 Focused on acquiring and managing medical outpatient facilities 🔗 Tenants include physician groups, regional systems, and national healthcare operators https://lnkd.in/gbrq5uJt

46

7 Comments