The Valt Journal #03
Featuring Buyouts Magazine by Adam Street, Investment opportunities in AI by JP Morgan & TPG, Private Markets in charts and Private markets beats public markets by Hamilton Lane.
Hi, Welcome to the new edition of The Valt Journal. In every issue, we cover the best and the latest insights into the global private markets. The Valt Journal is a repository of time sensitive and timeless research, delivered to your inbox every 2 weeks, so you don’t have to look anywhere else! Clicking the headlines is all it takes.
REPORTS AND RESEARCH
2023 Global Institutional Investor Survey
Nuveen
How investors are rethinking markets, reallocating portfolios and responsibly investing amid dramatic shifts in the macroeconomic and geopolitical landscape. 72% of managers look at increasing allocation to private markets in the next 5 years.
Relative Attractiveness of Direct Lending: Liquidity, Volatility and Drawdowns
Stepstone Group
Direct lending has managed to maintain its edge against public markets as low volatility and limited drawdowns enable it to offer relatively high risk-adjusted returns. Read the complete report by Stepstone Group.
Capital Commitment to Private Equity
Research Paper
This well-researched paper lays out the methodology for calculating optimal allocation to private equity, and makes a case about how co-investing and secondary markets work as a measure for increasing allocation to the asset class.
The AI Revolution
TPG Capital
This latest report by TPG provides perspective on AI in discussion with Deputy CTO at Microsoft. They discuss how AI might be as big if not bigger than the Industrial Revolution in terms of its economic impact. However it might be some time before the full effects of AI trickle down to the more established segments of the tech stack.
Buyouts Magazine: From Upstarts to Titans
Adam Street Partners
Emerging managers can provide an edge in pursuing niche, overlooked or special strategies. Read the latest insights from the Adam Street team.
ARTICLES
Looking beyond Private Equity secondary markets
Morgan Stanley
The private equity secondary market is fairly well known to investors but other secondary markets — such as those for hedge funds and private credit — may be less familiar.
How have higher rates impacted alternatives?
JP Morgan
In real estate, industrial asset valuations have barely flinched given low vacancy rates and rising rents, whereas the office space has seen further pain. Results in private credit have been mixed, but in general, higher rates have weighed on the value of loans.
Private markets beats public markets - even after fees
Hamilton Lane
On a net basis (after all fees and expenses) private equity funds have beaten public equities over most of the past 20 years — even during the recent bull market for public stocks. Learn more in this piece by Hamilton Lane.
Private Market Insights – May 2023 Edition
UBS
Semi-annual edition with a quick snapshot of latest trends, drivers and the news in private markets.
Private Equity has become more competitive. How do managers stand out?
Institutional Investor
With the surge in private equity firms and a dwindling pool of potential target companies, the competition for good deals has become fiercer among private equity dealmakers.
Private Markets in charts: Where to invest?
Hamilton Lane
Good collection of charts and statistics laying out the landscape for private markets including private credit, infrastructure and secondaries.
How is OTPP investing in APAC infrastructure
OTPP
Ontario Teachers' Head of Infrastructure in Asia Pacific (APAC) shares his perspective on opportunities in the region and the importance of being agile and flexible.
Where Asian Family Offices want to invest next?
Institutional Investor
Private debt and hedge funds are enticing to family office investors in the Asia-Pacific region.
Where are the investment opportunities in AI?
JP Morgan
AI could be a key source of growth for private and venture investors. The demand for computing power is expected to grow 3-5x in the next five years, and disproportionately benefit the GPU manufacturers. Foundries that manufacture AI-related integrated circuits are set to see rapidly-growing demand.
The case for alternative investments
JP Morgan
Explore the three primary roles that alternative investments can play in portfolios: Access to broader opportunity sets, enhanced diversification and premium income generation potential. See the charts below.
Historical annualized returns of Global Buyout & Growth Equity Index vs. MSCI ACWI PME
Asset class yields
PODCASTS, VIDEOS AND WEBINARS
The Golden Age of Credit
Hamilton Lane
Private credit has outperformed public credit for 21 of the last 22 years. Listen to the podcast by the Hamilton Lane team where they discuss the trends they are seeing, and why they believe this asset class could be crucial. (~24 min)
Asia-Pacific with Matt Michelini
Apollo Global Management
In a recent Q&A, Partner and Head of Asia-Pacific, Matt Michelini discussed Apollo’s growth across the region and key trends impacting the investment landscape.
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