LP Toolkit/Institutional Private Markets Allocation Policy Calculator

Institutional Private Markets Allocation Policy Calculator

Check whether your private-markets share is within your policy range. For pensions, endowments, family offices and funds of funds.

Questions this calculator answers
  1. Our private equity allocation policy allows a 9% to 15% share. Is our portfolio within that range?
  2. In a $5 billion portfolio, how far is our current private-markets share from the 12% target?
  3. How much more could we put in private markets before reaching the 15% limit?

Allocation policy at a glance

Estimate based on the inputs shown.

Current policy status
Within band

At target; permitted range is 9.0%–15.0%. $150m of capacity remains to the upper limit.

Permitted allocation band9.0%–15.0%$450m–$750m using the current total portfolio value.
Allocation variance0.0 ppCurrent allocation less policy target.
Dollar variance$0mAbsolute capital difference from target.
Current allocation capital$600m12.0% of the current total portfolio value.
Target allocation capital$600m12.0% policy midpoint using that same total portfolio value.

How it is calculated

Variance = current allocation − target; permitted range = target ± deviation

Rate differences are in percentage points. All dollar amounts use the same current portfolio value.

Read the result in context

This LP allocation-policy tool shows both your gap from target and your permitted range. You can be above or below target and still be within the policy range.

Can an allocation be underweight but still within policy?

Yes. The target is the middle of the range. The range sets whether your current share meets the policy.

Why use percentage points?

The difference between two percentages is measured in percentage points.

What denominator is used?

All dollar amounts use the current total portfolio value you enter. This includes your target, current share and both limits.