1. The Geopolitical Pulse: LATAM’s Place in a Shifting World
Latin America’s growing influence on the global stage is reshaping how capital flows and investment opportunities are perceived in the region. This was underscored by Jorge Castañeda, former Mexican Secretary of Foreign Affairs, in a fireside chat exploring the region’s evolving role in trade, diplomacy, and security, and how US–LATAM relations are adapting to new realities. As Mr. Castañeda noted during the conversation: “Latin America is no longer a passive player in global affairs; our choices now reverberate far beyond our borders.”
2. Macro Forces: Navigating Volatility and Opportunity
Latin American allocators are being challenged to interpret and respond to a landscape marked by trade tensions, regulatory shifts, and inflationary crosscurrents. The market outlook session highlighted how these macro forces continue to define the investment environment and influence asset class performance. “Investors must remain alert as regulatory shifts and inflation dynamics continue to reshape the opportunity set,” observed Alexander Wright, Partner and Global Wealth Strategist at Apollo.
3. From Macro to Portfolio: Turning Insight into Action
The ability to translate macroeconomic insight into actionable portfolio decisions is a defining skill for Latin American wealth managers. A panel focused on identifying risks and opportunities, and on adapting strategies to local realities. As one panelist put it, the challenge is not just understanding the macro but knowing how to implement it for our clients. Conferences like this help wealth managers to stay informed and sharpen their skills.
4. The Inflection Point: Alternatives Become Core in LATAM
Private market and hedge fund investments are no longer considered an alternative—they are moving from the sidelines to the core of Latin American portfolios. This signals a fundamental shift in the 60/40 portfolio and follows a global trend. This was a central theme as delegates discussed the trends driving private market and hedge fund adoption and the need for new frameworks and education. “We’re seeing a structural pivot—alternatives are moving from the periphery to the core of Latin American portfolios,” said Wes Sturdevant, iCapital’s Head of International Client Solutions Americas.
5. Portfolio Construction: Rethinking the 60/40 Paradigm
The classic 60/40 portfolio is being reimagined as LATAM advisors are embracing private markets and hedge funds as foundational, not just additive, to client strategies. The panel on portfolio construction emphasized how private assets are increasingly viewed as essential for diversification, risk management, and long-term income. “Private markets are no longer just a diversifier—they’re a foundation for modern portfolios,” explained Juliet Zawedde, VistaOne’s Head of Private Wealth Strategic Partnerships, Chief Product Officer.
6. Leadership and Diversity: Building Resilient Organizations
A Women’s Networking Luncheon featured Laura Raffo, Economist and Political Leader from Uruguay and Angie Lau, co-founder and editor-in-chief of ASRV and founder of Life Beyond School, discussing leadership and navigating change through resilience, emotional intelligence, communication, creativity, and adaptability. Raffo stressed the human element in business, the importance of two-way communication, and the need for women to recognize and navigate biases. Lau emphasized the value of human skills like emotional intelligence in an AI-driven world and highlighted that active listening—hearing what is not said—is crucial for effective communication.
7. Private Credit: Seeking Value in a Crowded Field
As private credit matures and competition intensifies, Latin American allocators must look beyond headline strategies to uncover differentiated sources of value. The conference’s private credit panel explored how direct lending and niche approaches can still offer compelling opportunities, even as market structures evolve. “Even as competition intensifies, there are still pockets of value for those willing to look beyond the obvious,” said Greg Galligan, Vista Credit Partner’s Co-Head of Vista Credit Partners and CEO of Vista Credit.
8. Real Assets: Inflation Hedges and Portfolio Resilience
Inflation and volatility have renewed interest in real assets as a means of achieving portfolio resilience and diversification for Latin American investors. The panel on real assets mapped the opportunity set across data centers, farmland, infrastructure, and net-lease, emphasizing the importance of careful asset selection. “We believe real assets continue to be a great tool for diversification and current yield, but asset selection is more important than ever,” noted Gary L. Rozier of Blue Owl’s Real Assets Management Team.
9. Data-Driven Allocation: The Rise of Model Portfolios
Latin American advisors have the opportunity to use model portfolios, powered by data and analytics, to align alternative investments with client objectives and regulatory realities. A dedicated session by Kunal Shah, iCapital’s Head of Private Asset Research and Model Portfolios, highlighted how these tools can support scalable, outcome-oriented allocations.
10. Access Innovation: Private ETNs for LATAM Investors
Introduced at the conference, new Private ETNs by iCapital and LYNK Markets, represent a next step in democratizing access to private market and hedge fund investments for Latin American investors. These wrappers are purpose-built to overcome longstanding regulatory and distribution difficulties in the region, offering streamlined, scalable entry points to bring investors’ portfolios beyond 60/40. In an interactive session, LYNK Markets’ CEO Mario Rivero delivered a compelling case for how Private ETNs can not only enhance operational efficiency but also dramatically expand market reach for asset managers and advisors. “Private ETNs can streamline access and align with local requirements for LATAM investors,” noted Rivero, underscoring their potential to transform the investment landscape across Latin America. Read the press release.
For more information about iCapital CONNECT | Tulum 2025, or to register your interest in future events, please contact [email protected].
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