Increasingly getting questions from advisors / intermediaries / lenders on "what are you going to do with x y z asset" which has been in portfolio for 8 years
I normally just say keep growing it and note that the median hold is around 7 years now
But god damn, its annoying.
| +89 | Nothing to do at work & bored to hell | 9 | 1d |
| +67 | Do people over-index on 'moats' | 22 | 17h |
| +52 | Predicted Net Worth in Trodden Finance Path by 60? | 20 | 1d |
| +44 | Biggest (avoidable) failures in PE Investments? | 25 | 19h |
| +38 | Why is ROIC never really a topic when looking at companies IRL | 11 | 4d |
| +24 | What do you think of PE Value Creation Careers in 2026? | 7 | 31m |
| +19 | Senior IR Lifestyle | 4 | 2h |
| +12 | NY LMM PE Recruiting | 3 | 1d |
| +12 | Honest opinions needed about lateraling | 4 | 2d |
| +12 | How to approach Buyside Recruiting | 3 | 5d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Based on the most helpful WSO content, it's not uncommon for advisors, intermediaries, or lenders to question the long-term strategy for assets that have been held for an extended period. This is especially true in asset management, where stakeholders often want clarity on the direction and purpose of portfolio holdings.
Here are a few ways to handle such questions effectively:
Provide a Strategic Context: Instead of just saying "keep growing it," tie your response to the broader strategy of the portfolio or fund. For example, if the asset aligns with a core or opportunistic strategy, explain how it fits into the long-term goals.
Highlight Performance Metrics: Share relevant performance data or milestones achieved by the asset. This can help justify its continued presence in the portfolio.
Discuss Value-Add Opportunities: If applicable, mention any ongoing or planned initiatives to enhance the asset's value, such as redevelopment, tenant upgrades, or operational improvements.
Acknowledge Market Trends: If the asset's hold period exceeds the median, you can explain how market conditions or specific circumstances have influenced the decision to retain it longer.
Turn the Question Around: If the questioning becomes repetitive or unproductive, you could ask for their perspective or concerns. This can help shift the conversation to a more collaborative tone.
While it can be frustrating, these questions often stem from a genuine interest in understanding the portfolio's direction. By framing your responses strategically, you can address their concerns while reinforcing your expertise.
Sources: Asset Management as a long-term career?, Q&A: Managing Director at Large Global Asset Manager, Q&A - Infrastructure PE & IBD, Q&A: Managing Director at Large Global Asset Manager, Real Estate Asset/Portfolio Management Tips and Tools
Buy better assets
Try not to buy a shitco next time. Hope that helps!
Inventore ex excepturi maxime iste iste. Blanditiis qui natus ipsam recusandae quos velit. Illum est nesciunt quia et omnis sit.
Exercitationem enim aut cupiditate aut neque quas quibusdam. Quisquam deserunt iusto magnam est velit eaque autem assumenda. Rem enim rem rerum a. Soluta sit possimus quasi quia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...