MSCI Unveils Classification Standards to Boost Transparency in Private Assets
MSCI, a global provider of equity, fixed income, real estate indices and multi-asset portfolio analysis tools, has launched the MSCI PACS (Private Asset Classification Standard), a proprietary asset classification framework designed to bring comparability and consistency to private markets. Covering a wide array of private assets – including private companies, real estate and infrastructure – PACS provides granular classifications that can be used to benchmark, analyze, and communicate portfolio strategies and performance effectively across the investment lifecycle.
The private asset industry, encompassing everything from private companies and infrastructure to real estate, is expanding rapidly, driven by rising allocations from institutional funds and high-net-worth investors. However, this growth has been hampered by a lack of transparency and a common language for classifying investments, measuring performance, or communicating strategies.
MSCI PACS aims to resolve this challenge by providing a granular, global taxonomy specifically for private assets. Delivered as an AI-powered managed data service, PACS will apply consistent sector tagging at scale across the investment lifecycle, enabling better benchmarking and portfolio analysis.
“Private markets are at an inflection point, with increasing prominence in the global financial ecosystem,” said Luke Flemmer, head of private assets at MSCI. “With PACS, MSCI is introducing the infrastructure that will define how private assets are identified, compared, and analyzed globally for years to come.”
The new system builds on MSCI’s long-standing leadership in creating global standards, notably the Global Industry Classification Standard, or GICS, which is widely used to categorize public companies. By extending this commitment to the private space, MSCI intends to provide practitioners with the tools necessary to enhance transparency and support more informed decision-making within their private asset portfolios.
On a parallel tract, global provider of independent investment research Morningstar Inc. – best known for its popular mutual fund and ETF ratings – issued its first Morningstar Medalist Ratings for semiliquid funds. The move taken last month extends Morningstar’s due diligence framework into the fast-growing alts investment market, aiming to provide investors and advisers with greater transparency around products that blend private and public assets.
Click here to visit the AltsWire directory page.
