Designed to serve as your primary source for navigating the world of alternative investments.
- Venture: As the valuation reset continues to take effect, we view the current market environment as an attractive entry point for both early- and late-stage venture managers.
- Direct Lending: The floating rate nature of private credit, in addition to the current market environment which allows direct lenders to secure stronger protective covenants and better loan-to-value ratios, makes direct lending an appealing option.
- Real Estate Debt: With $1.2 trillion of commercial real estate debt to mature in the next two years, real estate debt managers are able to deploy fresh capital in an environment that includes much higher interest rates and fewer banks willing to lend.
- Macro Hedge Funds: Diversifying hedge fund strategies, such as global macro, have generally performed better during periods of higher interest rates and market volatility.
- Structured Investments: Principal protected structured investments offer investors upside participation in the equity markets, while maintaining downside protection.
- Annuities: Investors seeking protection may also consider locking in attractive terms for fixed indexed annuities, which offer 100% principal protection.
Join us on January 9 for our to learn more about these alternative investment opportunities, and discover why we believe 2024 is likely to be the year of greater investor optionality and a broader opportunity set.
Co-Founder and Managing Partner,
Head of Investment Solutions
CHART OF THE MONTH
Direct lending, which primarily finances private equity-backed companies, remains an attractive investment opportunity, offering returns comparable to the public equity market with significantly more downside protection. Private equity-backed companies have historically exhibited a lower default rate than those without backing, which is a testament to the ability of PE sponsors to swiftly adapt to shifting market conditions and protective covenants often negotiated by direct lenders.
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