The Role of Volatility in Private Equity

Sally Kohn: I've seen some research on this that would say maybe if you regress the performance of a VC index on said, yes, and P 500, you get a beta of maybe 1.4 or something like that. But not only that you might have a negative convexity that in the really extreme scenarios downside, it's going to do even worse. So why can't you just take the volatilities of your 500 companies and just wait them and say, Okay, I've got these weights. And then you get this richness of correlation. She says when she does her asset allocation work, what correlation are you using between private equity and public equity? "I

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