Selectivity Matters
Private market investments offer the potential for positive risk-adjusted returns with inflation hedging, portfolio diversification, return enhancement and stable income. Not all private market investments, however, are created equal.
Fully understanding these strategies, associated risks, and benefits is key to selecting an investment that can help achieve client goals.
Why Alternative Investments
Private markets potentially open the door to more investment opportunities.
More companies are opting to access financing through private markets and private lending rather than a traditional IPO. We believe private markets provide investors with the opportunity to access potentially attractive investments that are not available through the public markets, which, in our view, provides important diversification and return enhancement relative to a traditional portfolio invested solely in public markets.
Source: Federal Reserve Bank of St. Louis (FRED) as of March 2022, latest available
Benefits of Alternatives Allocation
Private markets have the potential to outperform public markets over the long run.
While the public markets generate a competitive return, from our research, private markets tend to outperform over the long run. A key differentiator of the private markets is the ability to generate value across business cycles.
Source: Bloomberg as of December 2023, latest quarter-end data available. Past performance is not indicative of future results. There can be no assurances that historical trends will continue. These returns do not reflect the portfolio of any specific investor, and there can be no assurances that any investor will receive the returns shown herein. Actual returns may be materially different.