Brian Moriarty and Jack Shannon: Putting Private Markets Funds Through Their Paces

Today’s guests are Morningstar’s Brian Moriarty and Jack Shannon. Brian is a principal, fixed-income strategies, for Morningstar. Before assuming his current role in 2015, Brian was a client solutions consultant for Morningstar Office, a practice and portfolio management system for independent financial advisors. Before joining Morningstar in 2013, he was a research assistant for DePaul University’s religious studies department. Brian holds a bachelor’s degree in political science from Michigan State University and a bachelor’s degree in Islamic world studies from DePaul University.

Jack Shannon is a principal, equity strategies, for Morningstar. He focuses on actively managed equity strategies and is the lead analyst for MFS and Artisan Partners, among other firms. Before joining Morningstar in 2020, Jack worked in commercial banking and was a consultant providing subject-matter expertise on complex financial litigation. Jack holds a bachelor’s degree in economics and history from James Madison University. He also holds a master’s of business administration in investments and corporate finance from the University of Notre Dame’s Mendoza College of Business.

Episode Highlights

00:00:00 Introduction

00:02:06 What are Private Markets, and What Investment Opportunities Do They Provide?

00:03:13 Do Semiliquid Funds Provide Easier Access to Private Markets?

00:05:57 Applying Morningstar Processes to Evaluate Private Markets

00:09:50 Managing Liquidity in Private Market Investments

00:18:48 Valuation and Transparency: Putting Private Assets Under the Microscope

00:24:07 Payment in Kind as a Valuation Concern

00:28:02 Public vs. Private Markets: Understanding Risk, Language, and Infrastructure Differences

00:39:28 Building Methodology to Explain Private Asset Fees and Incentive Structures

00:44:22 What Morningstar Medalist Ratings Signal for Semiliquid Funds

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Private Credit Pricing: Are Prosecutors Opening Up Pandora’s Box?

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