Wall Street Deploys Quants to Gain Data Edge in Fast-Growing Private Markets
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Wall Street firms are deploying quantitative analysts to gain an edge in the fast-growing private equity and credit markets.
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Quants are finding ways to apply data science to private markets, like explaining performance and separating alpha from market moves.
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Firms like Ares and BlackRock are acquiring other alternative managers and aiming to double revenues from private assets.
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BlackRock is using models to identify late-stage venture deals and Ares is deploying 30 quants to evaluate external managers.
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Challenges exist due to limited data, but increased transparency and alternative data provide opportunities for quants in private markets.