Macro Outlook 2023
2023 - the Year of the (Re)balancing Act
Insights
9 January 2023
The diversification offered across private markets’ vintages, strategies, asset classes, geographies, and instruments offer structural premiums, but a hyper-diversified private markets solution across multiple funds and managers, and therefore across numerous underlying asset holdings provides a significant reduction in defaults, significantly increasing the premium offered compared to public markets.
Alpha is in the Blend
NEWS
2 January 2023
Private assets continue to attract capital as investors seek better returns. We think private markets can continue to deliver but will increasingly rely on hard-to-access areas and specialist skills. The recent past has been turbulent. We typically assess meaningful change in the industry over years or decades, but the pandemic and other events spurred reassessment on a quarterly or even monthly basis. As investors navigate an unprecedented market regime, we see private market investments as well suited to the task.
Private Markets - Pivotal for Investors in Turbulent Times
NEWS
Alexis Weber
Founder & CIO
As a private markets business that focuses on wealth and asset managers, we are tasked to find solutions to the current investment challenges, laid bare in public markets investors’ portfolios.
Our (re)balancing act is intended to pivot portfolios towards longer-dated investments, specifically concentrated on the core macro drivers impacting portfolios today and balancing them with the fundamental secular trends that we believe will be driving growth beyond the current period of market volatility.
Our top three Macro Drivers
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The Great Correction
Opportunities in the repricing of global corporate and real assets alongside the leading alternative credit, distressed and special situation specialists
Real Assets Dislocations 25%
UK £ Dislocation 10%
EU/NAM Secondaries 25%
Global Distress & Special Sits 40%
Inflation Era
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Infrastructure Alternatives 40%
Transportation & Logistics 30%
Core RA & Built-to-Rent 20%
FMCG Special Situations 10%
Income Gap
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Alternative Credit 45%
Real Assets 25%
FEATURED MACRO DRIVERS
FEATURED SECULAR TRENDS
Corporate Technology Revolution
Sustainability & Social Impact
Global healthcare & life sciences
Digital consumer economy
