Institutional Private Markets Allocation Policy Calculator
For pension funds, endowments, family offices and fund-of-funds teams monitoring private-markets policy ranges.
- For an institutional $5bn portfolio with a 12% private-markets target and ±3-point band, where does the allocation sit?
- Is the portfolio above, below or within its private-equity allocation policy band?
- How much additional exposure can the portfolio add before reaching its upper policy limit?
Allocation policy at a glance
Estimate based on the inputs shown.
How it is calculated
Variance = current allocation − target; permitted range = target ± deviation
All percentage differences use percentage points and every dollar amount uses the same current portfolio denominator.
Read the result in context
This institutional allocation-policy calculator separates an LP’s target gap from its wider permitted band. Being underweight or overweight private markets does not automatically mean the portfolio is outside policy.
Can an allocation be underweight but still within policy?
Yes. The target is the midpoint; the permitted band defines whether the current allocation is inside policy.
Why use percentage points?
Subtracting two allocation percentages produces a percentage-point difference.
What denominator is used?
Target, current, minimum and maximum dollar amounts all use the current total portfolio value entered.