February 2024
WELCOME TO OUR MONTHLY NEWSLETTER.
Designed to serve as your primary source for navigating the world of alternative investments.
This month, we launched Architect on iCapital Marketplace, expanding access to more than 350,000 U.S. financial advisors.
Architect is a first-of-its-kind portfolio construction tool that empowers financial advisors to build robust, personalized portfolios incorporating alternatives and structured investments with traditional asset classes.
Driven by powerful analytics and a user-friendly interface, Architect is designed from the ground up to bring transparency and a more informed approach to the alternatives and structured investments process.
With Architect, advisors can create new asset allocations, visualize key risk drivers, compare scenarios, simulate historical performance, and design outcome-oriented portfolios that align with their clients’ return objectives and risk profiles.
Start your free trial now or contact the Architect team to schedule a demo.
Thank you for your continued partnership and support.
Chart of the Month
An allocation to alts would have improved outcomes for a 60/40 portfolio since 2007
Growth of $1 million from different portfolio allocations, Q3 2007 – Q3 2023
Spotlight: Beyond 60/40: Episode 12
iCapital Chief Investment Strategist Anastasia Amoroso explores the private equity exit environment for 2024 and sits down with Ashmi Mehrotra , Global Co-Head of the Private Equity Group at J.P. Morgan Asset Management , to discuss the private equity market landscape.
Monthly Market Roundup
Brookfield Oaktree Wealth Solutions investment professionals provide their insight on why they are optimistic about real estate, what conditions make this a buyer’s market for infrastructure assets and why leveraged loans should remain attractive even if central banks soon start cutting interest rates.
This article examines the misconception that private equity valuations are irrational and opaque, and finds that through historical bouts of market volatility, private equity has acted very rationally.
This edition of Pantheon Perspectives delves into three pivotal themes in 2024: intensified focus on manager and thematic asset selection, potential for dealmaking to be unlocked, and compelling secondary opportunities.
Learn how debt could be an important component of any investor’s commercial real estate portfolio over the long term due to its impressive risk-adjusted returns and diversification benefits.
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In Case You Missed It
According to historical data, a portfolio with a 20% allocation to alternative investments would have improved overall returns and reduced drawdowns in times of market stress compared to a traditional 60/40 portfolio. Read more.
Get exclusive insights into the leading structured investments trends from the past year. Read more.
Discover why we believe that the trajectory of inflation and central bank policies will be key factors influencing the performance of international markets throughout 2024. Read more.
Monthly Alts Pulse
Tune in for this latest episode of Monthly Alts Pulse with iCapital Chairman and CEO Lawrence Calcano and Michael Sidgmore , Co-Founder and Partner at Broadhaven Ventures, as they discuss the adoption of alternative investments.
Market Pulse
Thanks to confidence in a reasonably stable economy and easing monetary conditions, the long-awaited thaw in the private equity exit environment could be here, which would provide the latest evidence for a broader investor opportunity set in 2024. Learn more in Chief Investment Strategist Anastasia Amoroso ’s Market Pulse .
New at Capital
iCapital is proud to be recognized by Forbes on The Fintech 50 list for the seventh consecutive year! iCapital is featured as one of six firms driving the Future of Investing category, and it is the only company to be recognized in the investing space for seven years running.
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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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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.
Index Disclaimers: The MSCI ACWI (All Country World Index) is designed to represent performance of the full opportunity set of large- and mid-cap stocks across 23 developed and 24 emerging markets. The Bloomberg US Aggregate Bond Index, which is a broad base, market capitalization-weighted bond market index. The index includes Treasury securities, government agency bonds, mortgage-backed bonds, corporate bonds, and several foreign bonds traded in the U.S. Preqin’s PE Index consists of funds within Preqin’s database that are categorized within one of the following sub strategies: Balanced, Buyout, Co-Investments, Direct Secondaries, Fund of Funds, Growth, Hybrid, PIPE, Secondaries, Turnaround, and Venture Capital. The Cliffwater Direct Lending Index (CDLI) is an asset-weighted index of over 11,000 directly originated middle market loans totaling $264B. It seeks to measure the unlevered, gross of fee performance of U.S. middle market corporate loans, as represented by the asset-weighted performance of the underlying assets of exchange-traded and unlisted BDCs, subject to certain eligibility requirements. The modified NCREIF-ODCE (Open End Diversified Core Equity) Index is a capitalization-weighted, gross of fee, time-weighted return index for real estate investments. Modified with a higher return, greater risk profile to better reflect the nature of private real estate investments, which have greater exposure to the core-plus segment of the market. The HFRI Fund Weighted Composite Index is a global index comprised of single-manager hedge funds that report to HFR Database, weighted according to the AUM reported by each fund for the prior month.
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