Question
Why can private capital appear more diversified from public markets than it truly is?
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Answer
Appraisal-based smoothed returns understate true correlations.
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Question
Why can private capital diversification benefits weaken հենց when investors need them most?
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Answer
Correlations with public markets tend to rise during stress.
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Question
Why do private debt investments usually offer higher yields than comparable public debt?
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Answer
They compensate for illiquidity, complexity, and credit risk.
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Question
How does mezzanine debt rank relative to senior unsecured debt in the claim hierarchy?
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Answer
Below senior unsecured debt.
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