Free private markets document generator

Private Markets Portfolio Construction Memo

Draft an institutional LP private equity portfolio construction memo covering strategy mix, manager count, commitments, vintages and concentration limits. Turn an institutional private equity allocation policy into a practical manager, strategy and vintage-year portfolio design.

Open the interactive Portfolio Construction

What this generator covers

  1. Portfolio objective
  2. Strategy architecture
  3. Geographic allocation
  4. Manager portfolio
  5. Vintage construction
  6. Concentration limits
  7. Co-investments & secondaries
  8. Implementation plan
  9. Monitoring framework

Inputs used by the document

  • Program objective: Institution, Target allocation, Program horizon, Return objective
  • Portfolio architecture: Strategy mix, Geography mix, Target manager relationships, Typical commitment size, Vintage pacing
  • Limits & implementation: Concentration limits, Co-investment policy, Secondaries policy, Implementation priorities

01

Portfolio objective

Insurance Investment Office will construct a 16% private markets program over a 10+ years horizon, targeting 15% net IRR and 1.8x net TVPI.

02

Strategy architecture

The strategic mix is 35% buyout, 20% venture, 15% growth, 15% private credit, 10% secondaries, 5% co-investments. Each sleeve should have a defined return role, liquidity profile and risk budget.

03

Geographic allocation

Target geographic exposure is 70% North America, 20% Europe, 10% Asia-Pacific. Geographic diversification should be assessed on underlying portfolio-company exposure, not fund domicile alone.

04

Manager portfolio

Maintain approximately 18-24 manager relationships with typical commitments of $20m-$40m. Re-ups must be underwritten against new-manager opportunities.

05

Vintage construction

Commit approximately $120m-$160m annually across 4-6 commitments. Avoid filling annual quotas with lower-conviction funds when market opportunity is weak.

06

Concentration limits

Observe the following limits: 10% per manager, 6% per fund, 25% per vintage and 40% per strategy. Test correlated exposures across managers, strategies, sectors and geographies.

07

Co-investments & secondaries

Use selectively for fee reduction and exposure scaling; cap at 10% of private markets NAV. Use to accelerate deployment, rebalance vintages and acquire seasoned cash flows.

08

Implementation plan

Near-term priorities are to protect re-up capacity, add two specialist managers and reduce 2021-2022 vintage concentration. Staff should maintain a forward calendar of re-ups, target managers and pacing capacity.

09

Monitoring framework

Review strategy weights, manager and fund concentrations, vintage-year exposure, look-through geography, sector risk, liquidity and performance attribution at least quarterly.

How to use this document generator

Review the example assumptions, replace them with information from your own investment process, and check every statement against the governing documents and source data. The interactive version updates the draft immediately and can export it to Word or PDF without a login.

Template transparency

Draft status

This template creates an editable first draft. Review every statement against source data and governing documents.

Privacy and export

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Scope

This is a practical starting point, not legal, tax, or investment advice.

Template 1.0 · Reviewed 13 August 2026