Wilshire's investment process begins with top down capital market research.  By carefully studying the valuation, cash flow growth and management factors that drive investment returns, Wilshire identifies the most attractive sectors.  Historically, the best returns are generated in an environment where transactions occur at a discount to the public markets, multiple exit strategies are clearly identified prior to investment, and management teams have the experience and resources to add value.

As the provider of daily capital markets information and risk analysis to over three hundred of the largest institutional investment management firms globally, Wilshire’s extensive research capabilities enable the investment team to monitor and review assumptions on an on-going basis.

By combining investor objectives with current market opportunities, Wilshire establishes private market sector targets and guidelines for each vintage year portfolio.  By identifying those sectors that hold the greatest promise for returns, the Private Markets Group looks to focus on partnerships with the best risk-adjusted returns, enhancing each vintage year portfolio's prospect for success.

Forward Calendar

Wilshire's seeks to identify top tier general partners well before they have funds ready to come to market.  Each year General Partners from Wilshire's master database bring new funds to market.  Of particular interest are the strategies suited to the current market environment, or newer partnerships started by seasoned professionals with successful track records of acquiring, building, and exiting investments.  By identifying prospective partnership investments in advance, Wilshire is able to consider a large universe, allow considerable lead time in focusing on the best opportunities, and ultimately influence to a greater extent than it might otherwise, the terms and conditions of selected partnerships for a greater alignment of interests.

At this stage, Wilshire reviews the track record of each general partner, focusing on the ability to access deal flow, transact at discounts to the public markets, add value through active management, and manage growth.  Extensive due diligence is initiated, including on-site visits with partnership management, verification of track record, calculation of expected returns, reference checks, and review of portfolio companies.  From this group, partnerships are recommended to the Investment Committee for final due diligence.

Due Diligence and Selection

Final due diligence includes a close examination of the organization, strategy and investment portfolio of the partnership.

While past performance is important, it does not predict future performance. Economic, capital market and industry conditions are beyond the control of the investor. To increase the likelihood of top quartile performance the investor must possess fundamental decision-making skills that can be applied to changing conditions.

For partnerships surviving the scrutiny of final due diligence, Wilshire then negotiates positions for each portfolio.  Recognizing the opportunity to add value through manager selection, Wilshire carefully considers an allocation to each partnership for its ability to meet specific return objectives.

Adding Value Through Portfolio Monitoring

Wilshire's process does not end with partnership selection. The investment team maintains involvement in each partnership frequently taking seats on advisory boards, closely monitoring investment pace, adherence to strategy, capital call schedule, and distributions. To support these efforts, Wilshire builds and maintains an investment database to track the status of underlying investments in each partnership.