WELCOME TO OUR MONTHLY NEWSLETTER.
The source for navigating the world of alternative investments
Opportunities Within the Commercial Real Estate Cycle
Real estate is starting to show positive returns, which could flip the script on skittish investor confidence. The NCREIF ODCE Index – which is considered a key measure of the real estate sector – saw total returns of 1.16% in Q4 2024. Perhaps more importantly, the property value part of the index was positive for the first time in over two years as several property types are recovering.
Vacancy rates and supply constraints are moving in the right direction to sustain this recovery. And recent company reports show that tenant demand is improving, driven by activity from large global customers who typically lead a recovery cycle. These fundamentals are favorable for core real estate equity and value-add real estate and are reasons why we upgraded our real estate rating in our recent Private Market Strategy Rating Report. Real estate continues to be an important part of many investors’ portfolios, offering attractive risk-adjusted returns.
To learn more about the private market investment opportunities available at iCapital, please contact our sales team at [email protected], and visit the iCapital Marketplace, or check out Alternatives Decoded.
Thank you for your continued partnership and support.
Dan Vene
Co-Founder and Managing Partner,
Co-Head of iCapital Solutions
CHART OF THE MONTH
NEW FROM iCAPITAL
Alternatives Decoded: 1Q 2025 Release
Our 1Q 2025 edition of Alternatives Decoded is now available! This chartbook is designed to equip you with the information you need to navigate the complex world of alternative investments, structured investments and annuities, all in one place. In our latest version, you will find updated real estate insights, data on asset-based lending, and new analysis on event-driven hedge funds.
BEYOND 60/40
Q4 Data, Blackstone, Portfolio Construction
In this episode, Anastasia Amoroso analyzes iCapital’s Q4 flow of funds data, highlighting the rising demand for private equity (PE) and private credit (PC). We also welcome David Stubbs from Blackstone to share their optimistic 2025 outlook and investment strategies. Finally, Anthony Polemis shares the role of iCapital’s goals-based portfolio allocator and new tools on Architect in revolutionizing alternative allocations.
Market Pulse
What Could Pause the Market Selloff and When?
With the implementation of tariffs on Mexico, Canada, and China, the S&P 500 is down roughly 6% from recent highs, approaching oversold levels. With bearish sentiment at a multi-year high, we look at four factors that could provide a sustainable floor to equities. In the meantime, we favor alternatives and income-generating assets, and rotating from cyclical to defensive stocks. Investors can also look for opportunities in oversold markets, particularly U.S. software companies with AI exposure. The spike in volatility may also make structured investments more attractive.
MONTHLY MARKET ROUNDUP
Crescent Capital gives its take on the opportunity for private credit going into 2025, including how secular trends and expectations of market-friendly policies from the new administration have created strong conditions for the asset class, how a higher-for-longer rate environment may impact portfolios and why manager selection is more important than ever, and how strengthening U.S. middle market companies and increased M&A activity open new opportunities for private credit.
In HarbourVest’s latest strategy insight, they examine the evolving climate investment ecosystem, explore how recent developments have generated positive support for the long-term growth potential for companies and investors within the overall climate segment, and consider ways allocators can fine-tune their portfolios to capitalize on this opportunity while optimizing risk-adjusted returns.
Dive into the development of the alternative credit market with Nuveen. Learn how it has allowed for greater innovation and how different segments of alternative credit can offer new opportunities across the risk/return profile for investors.
IN CASE YOU MISSED IT
Painting a PIKture: The Benefits and Risks of PIK in Private Credit
Lenders offer payment-in-kind (PIK) for strategic reasons, and it’s crucial to understand the distinctions between “good” and “bad” PIK. Learn about the risks and benefits of PIK and its role in direct lending strategies.
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.
Securities products and services are offered by iCapital Markets, an SEC-registered broker-dealer, member FINRA and SIPC, and an affiliate of iCapital, Inc. and Institutional Capital Network, Inc. These registrations and memberships in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services discussed herein. Annuities and insurance services are provided by iCapital Annuities and Insurance Services LLC, an affiliate of iCapital, Inc. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc. Additional information is available upon request.
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