Real Assets Adviser’s Post

"This illiquidity presents a unique opportunity for family offices that can afford to be patient. According to a Wealth Management report, their long-term investment horizon and flexibility position them to capitalize on market dislocations that might scare off others." #PrivateWealth #WealthManagement #RealAssets #PrivateMarkets #AlternativeInvestments #Alts #UHNW #HNW #FamilyOffices #IBD #RIA #PrivateInvestments #PrivateCredit #PrivateEquity #RealEstate

"Advisors need to make the effort and be “purposeful” about staying current, he said. “You can’t rely on learning through osmosis,” he said. “You have to actively engage in seeking information and knowledge.” #HatTip Good story from Ben Mattlin #StayCurrent #PrivateWealth #WealthManagement #RealAssets #PrivateMarkets #AlternativeInvestments #Alts #UHNW #HNW #FamilyOffices #IBD #RIA #PrivateInvestments

5️⃣ forces shaping private equity for UHNWs in 2024 On the back of nascent signs of healthier activity in PE markets this year, a few other key trends and forces are also paving the way for more UHNW investors to enter the market. 📈 Factor #1: Rise of open-ended vehicles • Open-ended funds eliminate the operational hurdles that beset drawdown funds and allow private investors to stay invested in businesses over the long haul, rather than receiving distributions from PE ventures that they would need to reinvest. • Good managers are often able to provide access to ‘best-in-class investment content’ – that is, access to PE assets which are ripe for growth and value creation – while having a proven ability to manage liquidity within a portfolio. 🏛️ Factor #2: Evolution in regulations to give PE investors more options • European investors could soon be able to access evergreen strategies as part of the ELTIF (and more recent ELTIF 2.0) and LTAF [long-term asset funds] wrapper. 🔥 Factor #3: Key ‘megatrends’ in private equity • Highly relatable themes such as the increasing dominance of AI technologies, demographic divergence and the energy transition are attracting wealth clients to gain exposure to these investment opportunities via the various private market asset classes. 📚 Factor #4: Education to meet the increasingly sophisticated needs of UHNW clients • Many GPs are providing on-the-ground education to support clients in looking holistically at how investments in private markets sit ‘within the context of the whole portfolio’, rather than ‘just investing in a single product or asset class’. 🛠️ Factor #5: Importance of value creation to achieve success in PE • The shift in business model away from multiple expansion and use of leverage toward value creation is key to achieve success in PE moving forward, and managers who are able to demonstrate that will allow UHNWs to invest into PE with greater confidence. #privateequity #UHNW #wealthmanagement ——— 2024年影响超高净值人士投资于私募的5️⃣大主力 今年，随着私募市场的逐渐回弹，种种其它的关键趋势及主力也在引导更多超高净值投资者来进入市场。 📈 主力#1: 开放式投资工具的兴起 • 开放式基金消除了困扰关闭式基金的运营障碍，并允许投资者长期持有旗下的企业，不必苦恼于再投资的考量及风险。 • 优秀的私募经理能提供适合增长和价值创造的私募资产，并同时具有管理投资组合流动性的经验和能力。 🏛️ 主力#2: 法规的演变为私募投资者提供了更多选择 • 欧洲投资者很快能通过ELTIF(以及最新的ELTIF 2.0)和LTAF投资工具来投资于越来越受欢迎的”常青策略”。 🔥 主力#3: 私募市场里的主题“大趋势” • 人工智能技术、人口发展/老龄化及能源转型等高度相关的主题有助于吸引超高净值投资者通过各种私募市场资产类别来捕捉这些”大趋势”里头的投资机会。 📚 主力#4: 通过教育来应对超高净值客户日益尖端的需求 • 许多私募经理正积极地提供全方位的基层教育，来让客户更全面地了解私募市场投资如何在投资组合层面加值。 🛠️ 主力#5: 价值创造对私募投资的重要性 • 由于宏观利率的变迁，要在私募投资里取得成功得依靠价值创造，而不是以往利用倍数增长及杠杆的商业模式。能够实施并展现这一点的私募经理们将能给予超高净值人士更大的信心来投入私募市场。 #私募股权 #超高净值投资者 #财富管理

"Dimon scolded the audience, primarily comprised of senior professionals at institutional asset owners, for its members’ large allocations to the private markets." #PrivateWealth #WealthManagement #RealAssets #PrivateMarkets #AlternativeInvestments #Alts #UHNW #HNW #FamilyOffices #IBD #RIA #PrivateInvestments #PrivateCredit #PrivateEquity #RealEstate

#Thoughtleadership from William Marr of Welton Investment Partners "The traditional 60/40 model is insufficient for meeting many investors’ goals and RIAs need other options. 2022 was a terrible year for 60/40 strategies, but there seem to be a lot of advisors who believe it was an aberration and gained confidence as 2023 rebounded. But on closer examination, that is just not the case. Since January of 2022, the S&P 500 has had 12 negative months and, in every one of these cases, global bonds have sold off as well. The protective quality of bonds during recent “flight to quality” periods has been non-existent. The income component is a nice addition to portfolios, but the non-correlation has disappeared. As a result, RIAs are searching for non-correlated strategies to provide protection during market dislocations and build more resilient portfolios." #PrivateWealth #WealthManagement #RealAssets #PrivateMarkets #AlternativeInvestments #Alts #UHNW #HNW #FamilyOffices #IBD #RIA 

One of the key risks for UHNW individuals is holding too much of one thing, even if it made them their fortune in the first place. Montreal-based Samuel Vallières, of Citi, offers ways to mitigate the risks. #wealth #UHNW #familyoffice #investing

“Remember you are buying a strategy and not just broad market exposure, so the quality of that underlying asset is of paramount importance. People very often forget that the diversification of returns can be very large and it can be impossible to access the best strategies." Dan Kemp  #PrivateWealth #WealthManagement #RealAssets #PrivateMarkets #AlternativeInvestments #Alts #UHNW #HNW #FamilyOffices #IBD #RIA #PrivateInvestments Laura Dew

Private markets in 2023 proved to be a story of resilience and adaptation according to the latest report from McKinsey & Company. Despite macroeconomic challenges, private equity buyout strategies shone, experiencing their best fundraising year ever. While this report speaks to investor behavior shifting towards known names and larger funds, with the largest fund managers attracting a significant portion of new commitments and indeed the challenging landscape for VC fundraising, we are seeing that LPs in the UHNW single and multi-family office segment are still looking at high quality lower middle market buyout managers (and indeed differentiated opportunities across all asset classes) which demonstrate strong historical vintage performance and/or exceptional management teams combined with highly compelling and unique market approaches. These trends, alongside challenges faced in real estate and the resilience of private debt, underscore the complex dynamics at play in the private markets landscape. "McKinsey & Company Global Private Markets Review 2024: Private markets in a slower era" is a must-read.    #PrivateMarkets #PrivateEquity #Fundraising #trends #insights #PlacementAgent #TritonLake   https://lnkd.in/ghWMY5Q

"Our relationship with NEPC, LLC stemmed from the exciting and distinctive opportunity that both businesses can offer the private wealth market when combined,” said Bob Oros, Chairman & CEO at Hightower Advisors." #PrivateWealth #WealthManagement #RealAssets #PrivateMarkets #AlternativeInvestments #Alts #UHNW #HNW #FamilyOffices #IBD #RIA #PrivateInvestments #PrivateCredit #PrivateEquity #RealEstate

Why Invest in Private Markets? #ThoughtLeadership from Scott McClatchey @ Ballast Rock Private Wealth "It’s certainly an exciting time for accredited investors wishing to implement institutional-style portfolios, now that many of the largest and most respected private firms are democratizing some of their flagship funds, providing accredited retail investors access to private asset classes heretofore unavailable." #PrivateWealth #WealthManagement #RealAssets #PrivateMarkets #AlternativeInvestments #Alts #UHNW #HNW #FamilyOffices #IBD #RIA #PrivateCredit #PrivateDebt #PrivateInvestments #AdvocatesforRealAssets