August 2024
WELCOME TO OUR MONTHLY NEWSLETTER.
Designed to serve as your primary source for navigating the world of alternative investments.
For almost every public alternative asset manager, second quarter 2024 earnings reports displayed optimism for the remainder of the year. Management teams expect the global IPO and M&A market to rebound, with an anticipated interest rate cut in September potentially providing an additional catalyst.
If entry activity is a leading indicator, there’s good reason for a positive outlook. Global private equity and venture capital entries have increased 26% this year and are on track to exceed pre-pandemic levels (1). The momentum continued into the third quarter with July entries up 33% year-on-year and 44% higher than July 2022 volume (1).
We see the record levels of dry powder being put to work as a sign of confidence that should work its way through to exit activity. The capital markets are gradually improving, seen in the growth of large sponsor-backed M&A exits, while the IPO market is still waiting for a jump start.
We offer several private equity strategies on our platform. Venture and buyout strategies are familiar to many investors, but growth equity also has several long-term potential benefits that may play out as the market gains momentum.
To learn more, please contact our sales team (altsales@icapital.com ) or login to iCapital Marketplace .
Thank you for your continued partnership and support.
Chart of the Month
Global Private Equity and Venture Capital Entries
Private equity and venture capital deal activity has been on the rise in recent months. Global entry deal activity reached $370 billion at the end of July and is up 26% year-over-year, tracking ahead of pre-pandemic levels. With firms increasing deployment, there are more reasons to be encouraged about a potential uptick in exit activity.
New from iCapital
We’re excited to announce the upcoming release of Alternatives Decoded. This data-driven handbook provides a comprehensive overview for understanding the core private market asset classes and strategies.
Gain access to the latest market information, leading indicators, and macroeconomic factors that shape and influence the direction and investment outlook of alternative assets.
Join Anastasia Amoroso , Joe Burns , Peter Horacek , and Kunal Shah on Thursday, September 12th at 4:00 PM ET to learn more about Alternatives Decoded and how it will help you and your clients!
Beyond 60/40: Private Credit
Anastasia Amoroso , Chief Investment Strategist, discusses the current trends and common misconceptions about private credit with Jeff Levin , Co-Head of North America Private Credit at Morgan Stanley ; and delves into financial reporting for investor portfolios with Joe Larizza , Head of Data Solutions at iCapital.
Market Pulse
We find compelling reasons to believe that growth and performance in private equity will continue. With a vast opportunity set, companies staying private for longer, and the levers private equity managers have to create value, investors seeking enhanced returns and diversification away from traditional assets may want to consider adding private equity to their growth or equity allocations. Learn more in Chief Investment Strategist Anastasia Amoroso ’s Market Pulse.
Monthly Market Roundup
Companies that are able to show efficient revenue growth in large markets through strong business metrics continue to be rewarded with healthy valuation multiples. Adams Street shares why investors remain willing to pay up for companies they believe have durable long-term growth potential.
Today, private equity markets have evolved to become the mainstream place for—and a significant means of investing into—the real economy. Ares explores how investors can access this large and growing investable universe.
Asset managers and wealth managers have an opportunity to shift their approach and broaden their investment offerings if they can develop the right capabilities, systems, and mix of talent to capture the demand for alternative investments. Bain outlines the key considerations for entering this space.
CEO Spotlight
The September issue of Real Assets Adviser features a cover story on Lawrence Calcano , iCapital Chairman and CEO. This unique profile traverses many topics, including Lawrence’s academic journey, the 17 years he spent working on Wall Street at Goldman Sachs, the iCapital founding mission and notable growth to date, Lawrence’s approach to leadership, and the most meaningful lessons he has learned along the way.
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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.
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