Commitment pacing

July 25, 2018

This paper provides insights into Meketa Investment Group’s process for setting the appropriate pace of commitments for private market programs.

The output of our process is an annual commitment budget designed to approach or maintain our clients’ target allocations to each private market asset class. The commitment pacing process also answers questions like “how long will it take to reach a target allocation?”, “how should commitments be allocated across time and strategies to reach ideal diversification?”, and “when will a program become cash flow positive?” While many complex factors are involved in commitment pacing studies, we believe our robust approach simplifies and demystifies the process.