The challenge
TPA investors size positions by exposure to systematic risk factors — equity, rates, credit — across the whole fund. Private markets don't offer the continuous pricing that requires: appraisal-based valuations understate volatility, and a private equity allocation's beta to public equities isn't fixed — it ran above 1.0 through the low-rate 2014–2021 period and has sat below 1.0 since 2022. Without independently repriced data, private allocations sit outside the risk budget entirely.
The SIPA approach
privateMetrics® and infraMetrics® reprice monthly on a mark-to-market basis — giving TPA teams the same data granularity for private holdings as for listed markets. Our four-part research series sets out how to put that to work.
Introduces the toolkit for mapping private equity and infrastructure holdings onto systematic risk factors using privateMetrics® and infraMetrics® — turning private allocations into numbers a TPA framework can use.
Download Part IShows how a simple listed equities-and-bonds reference portfolio turns private holdings into consistent risk budgets, separating skill-driven active returns from market-driven passive ones.
Download Part IITracks how private equity's beta to public equities has shifted over time, showing why exposures need active monitoring against listed proxies — not a static allocation weight.
Download Part IIIPuts it together in a worked portfolio: adding private assets to a factor-targeted allocation lifts the Sharpe ratio from 0.55 to 0.67, since private markets carry exposure listed proxies can't fully replicate.
Download Part IV