WELCOME TO OUR MONTHLY NEWSLETTER.
Designed to serve as your primary source for navigating the world of alternative investments.
We continue to see tremendous growth in alternative investments. Assets under management (AUM) nearly doubled in the last five years from $8.9 trillion in 2018 to $16.2 trillion today.1
We attribute that to three factors:
1) Financial advisors are seeking new sources of return, income, and diversification given traditional 60/40 portfolios have been tested through market volatility and rising correlations; and the private markets have historically delivered better performance.2
2) There is broader awareness of alternative investments and more high-quality education available leading to a greater understanding of the asset class.
3) The alternatives industry is focused on improving the processes and technology and offering innovative products such as open-ended (semi-liquid) funds.
While individual investors have historically been underrepresented in this asset class, we believe alternatives have evolved from a “nice to have” to an essential component in portfolios.
Thank you for your continued partnership and support.
Dan Vene
Co-Founder and Managing Partner,
Co-Head of iCapital Solutions
1. Source: Preqin, “Future of Alternatives in 2028,” iCapital Investment Strategy, with data compiled in March 2024. Data as of December 31, 2023. Alternative AUM includes Private Equity, Venture Capital, Private Credit, Real Assets, Secondaries, and Hedge Funds. For illustrative purposes only. Past performance is not indicative of future results. Future results are not guaranteed.
2. Source: Preqin, HFRI, Cliffwater, NCREIF, Bloomberg, iCapital Investment Strategy, with data compiled in March 2024. Data as of September 30, 2023. For illustrative purposes only. Past performance is not indicative of future results. Future results are not guaranteed.
CHART OF THE MONTH
Private wealth investor allocations to alternatives have been rising, and that trend is expected to continue. Forecasts estimate a 200%+ increase over a 10-year period, from $4 trillion to $13 trillion by 2032.
SPOTLIGHT: BEYOND 60/40: EPISODE 14
, iCapital Chief Investment Strategist, analyzes the evolution of alternative investments; 
, iCapital Co-Founder and Managing Partner covers the latest developments in private equity registered funds with 
, Partner and Head of U.S. Private Wealth at Partners Group; and 
, iCapital Head of Alternative Investment Distribution, explains how his team partners with RIAs.
MONTHLY MARKET ROUNDUP
2023 marked a challenging year for private equity, but are we seeing a turning tide? Bain’s annual report highlights the challenges faced – from a 37% drop in deal value to a slowdown in fundraising. Find out how the industry is gearing up for a potential rebound in 2024.
Meera Pandit, Global Market Strategist at J.P.Morgan Asset Management, examines whether private real estate is on the verge of a rebound due to a reset in pricing, the potential for lower rates, and signs of improving investor sentiment.
Morgan Stanley Investment Management shares why they believe that we are in a structurally different era for absolute return investing, and why this environment will be rife with alpha opportunities and conducive to hedge fund returns through 2024 and beyond.
In its Private Markets Mythbusters Series, Partners Group explains why periods of increased volatility can generate the most attractive buying opportunities in private markets.
IN CASE YOU MISSED IT
Hear from Lawrence Calcano, Chairman and CEO of iCapital, as he explains the challenges advisors face in helping clients gain exposure to alternatives – and why having a purpose-built, comprehensive portfolio construction tool matters. 
Discover why secondaries are a rapidly growing area within the private markets, and gain insights on how to select an appropriate fund. 
Learn about credit hedge fund strategies, which invest across a variety of debt instruments in pursuit of attractive absolute and risk-adjusted returns. 
MONTHLY ALTS PULSE: EPISODE 8
Tune in for this latest episode of 
with iCapital Chairman and CEO 
and 
, Co-Founder and Partner at Broadhaven Ventures, as they discuss the future of evergreen funds, product innovation, and the art of creating new investment structures, including model portfolios.
MARKET PULSE
Are Markets Starting to Pay Attention to Election Outcomes?
With presidential nominations now all but secure for the major U.S. parties, investors will begin to extrapolate the results to the financial markets. In general, we think it’s early for markets to reflect a potential outcome, but certain equity baskets are showing election-related divergences and recent data is indicating that the economy may be operating in a “sweet spot.” Learn more in Chief Investment Strategist ’s latest 
.
NEW AT iCAPITAL
iCapital is proud to be recognized by the Bank Insurance and Securities Association (BISA) as one of the recipients of the 2024 BISA Technology Innovation Award for the release of 
, our new state-of-art, purpose-built portfolio analytics tool.
IMPORTANT INFORMATION
The material herein has been provided to you for informational purposes only by Institutional Capital Network, Inc. (“iCapital Network”) or one of its affiliates (iCapital Network together with its affiliates, “iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.
This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as, legal, tax or investment advice, a recommendation, or as an offer or solicitation to buy or sell any security, financial product or instrument, or otherwise to participate in any particular trading strategy. This material does not intend to address the financial objectives, situation, or specific needs of any individual investor. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation.
ALTERNATIVE INVESTMENTS ARE CONSIDERED COMPLEX PRODUCTS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. Prospective investors should be aware that an investment in an alternative investment is speculative and involves a high degree of risk. Alternative Investments often engage in leveraging and other speculative investment practices that may increase the risk of investment loss; can be highly illiquid; may not be required to provide periodic pricing or valuation information to investors; may involve complex tax structures and delays in distributing important tax information; are not subject to the same regulatory requirements as mutual funds; and often charge high fees. There is no guarantee that an alternative investment will implement its investment strategy and/or achieve its objectives, generate profits, or avoid loss. An investment should only be considered by sophisticated investors who can afford to lose all or a substantial amount of their investment.
iCapital Markets LLC operates a platform that makes available financial products to financial professionals. In operating this platform, iCapital Markets LLC generally earns revenue based on the volume of transactions that take place in these products and would benefit by an increase in sales for these products.
The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward-looking statements or to any other financial information contained herein.
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