Our monthly newsletter is designed to serve as your primary source for navigating the world of alternative investments.
2022 has been a challenging year for the markets, but as we look ahead, we see several unique opportunities emerging. Global macro, distressed credit, and opportunistic real estate are three key areas on our watchlist. Another segment we are monitoring closely is the opportunity set that presents.
Secondaries have provided, for years, a great entry point for investors to gain private markets exposure. However, we are starting to see even more compelling opportunities emerge. This is partially driven by the “denominator effect,” as public pension funds find themselves overallocated to alternative investments given the decline in value of their public market positions. As institutional investors reduce private equity exposure,1 new investors have the ability to benefit from this by participating in secondary funds, and purchasing these positions at discounts.
As we approach 2023, we hope you’ll find this issue of Beyond 60/40 helpful, with third- party research and commentary.
Wishing you and your family a wonderful holiday season and a Happy New Year!
Head of Investment Products
1. See FundFire, Public Pensions Struggle to Contain Soaring Private Equity Allocations, December 13, 2022; Pitchbook, Will public pensions stick to their PE targets in 2023?, December 13, 2022.
MONTHLY MARKET ROUNDUP
WEEKLY MARKET PULSE
The markets have an obsession right now – the recession obsession. The slowdown we’ve all been waiting for might happen in the next two quarters, which means that the first half of 2023 might be the entry point back into risk(ier) assets. View the playbook for the patient investor in Chief Investment Strategist ‘s .
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Products offered by iCapital are typically private placements that are sold only to qualified clients of iCapital through transactions that are exempt from registration under the Securities Act of 1933 pursuant to Rule 506(b) of Regulation D promulgated thereunder (“Private Placements”). An investment in any product issued pursuant to a Private Placement, such as the funds described, entails a high degree of risk and no assurance can be given that any alternative investment fund’s investment objectives will be achieved or that investors will receive a return of their capital. Further, such investments are not subject to the same levels of regulatory scrutiny as publicly listed investments, and as a result, investors may have access to significantly less information than they can access with respect to publicly listed investments. Prospective investors should also note that investments in the products described involve long lock-ups and do not provide investors with liquidity.
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