In this special episode recorded live from the Morningstar Investment Conference, host David Bodamer talks with Brian Moriarty, head of Morningstar’s Manager Research team, about the latest trends shaping the semiliquid fund market. Brian shares insights from the latest research from Morningstar, explaining why investor flows are shifting away from private debt and toward private equity and venture capital, while exploring how changing market conditions may impact future return expectations.
Brian also explains how leverage, redemption limits, and portfolio liquidity affect the performance of semiliquid funds. Additionally, he discusses the role of cash management, portfolio overlap in private credit strategies, fee disclosure, and the approach to evaluating these investments through Morningstar’s Medalist Ratings, giving investors a clear framework for comparing semiliquid funds with public market alternatives.
Brian discusses:
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Why is investor flow shifting from private debt to private equity and venture capital funds?
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How leverage, redemption limits and valuation practices affect returns in semiliquid fund structures
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Role of portfolio liquidity, cash retention and debt maturity in managing investor redemptions
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How fee structures and incentive fee disclosures can affect comparability across investment products
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What Morningstar’s Medalist Ratings reveal about the valuation of semiliquid funds versus public market investments
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