Capital Allocations - 10.05.2010 I’m attending the PREA Conference this week in San Francisco. At this Fall Meeting, there is a significant turnout with a strong contingent of plan sponsors. There are always plenty of investment managers, advisors, and “service providers,” but the likes of the pension funds, endowments, and other institutional investors have not been out and about at these conferences. Their presence implies that we are at the front end of the next cycle as capital begins to recognize that it needs to get invested, albeit , there is still some concern about where this market is going. However, of greater interest are which managers will get the nod for the next round of allocations. Will the plans dole out second chances, or look to platforms that have retooled and positioned a new team on the bench, or an emerging manager. In my experience, memories are short, and once we get through the first stage of renewed investment activity, all the old names will be back in the game with plenty of capital. It happens with every cycle.

Tony LoPinto is a senior client partner and head of Korn//Ferry International’s Real Estate Practice and founder of SelectLeaders. The views expressed in this article are the author’s own.

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