RedSwan CRE’s Post

"A survey conducted for Brookfield Oaktree Wealth Solutions earlier in Q4 revealed what much of the industry already knows to be true, high net worth (HNW) investors in Canada and the US want alternative allocations. The survey of HNW investors — defined as investors with at least $2.5 million (USD) in investable assets — and HNW advisors — with an average of $633 million (USD) in assets under management — found that those who allocated to alternatives wanted more and those who didn’t have allocations yet wanted more. The survey even found that many investors would switch advisors for better access to alternative products." #PrivateWealth #WealthManagement #RealAssets #PrivateMarkets #AlternativeInvestments #Alts #UHNW #HNW #FamilyOffices #IBD #RIA #PrivateInvestments #PrivateCredit #PrivateEquity #RealEstate

99% of financial advisors plan to allocate part of their clients and portfolios to private markets this year, as revealed in a recent Hamilton Lane survey. Should we be surprised? Absolutely not. It’s clear that private markets have moved beyond a hedge against inflation and have become a strategic imperative for institutional investors. The challenges public markets have faced over the past 12-18 months have led to increasing institutional investors shifting allocations to private markets. It doesn’t look like it’s slowing down any time soon. Read the survey here: https://lnkd.in/dPgywrTs #PrivateMarkets #PublicMarkets #InstitutionalInvestors

Interesting piece by Institutional Investor's Michael Thrasher on the state of private markets. According to new research, private market assets under management are expected to grow at more than twice the rate of public assets and reach $60 to $65 trillion by 2032. With this rapid growth, the need for robust private markets administration solutions, like those offered by SS&C, becomes increasingly critical to support the complexities and demands of these expanding investments. https://lnkd.in/eqY2kQzh

https://lnkd.in/e_8uSkdT "81 percent of HNW investors believe that alternatives will yield stronger long-term outcomes compared to traditional portfolios" #alternativeinvestments #liquidalts

The #FundFinance market is impacted by the larger trends and shifts in private capital, and the latest McKinsey & Company Global Private Market Review offers some interesting insights! Here are three exciting trends to keep an eye on: 1. “Despite [recent] headwinds, recent surveys indicate that LPs remain broadly committed to private markets. In fact, the majority plan to maintain or increase allocations over the medium to long term.” 2. “Institutional investors have steadily increased their allocations to private markets.” 3. “The entrance of non-institutional capital, such as high net worth and retail, into the private markets landscape is one of the most significant structural shifts in recent years. . .Penetration of private market investments within non-institutional portfolios remains low, but the addressable capital pool for private markets GPs is massive.” Check out the report for more details! https://lnkd.in/gYHHiPar

Private markets growth is a force too powerful for even the strong headwinds of the 2020s! State Street conducted a survey of nearly 500 investment institutions earlier in the year and have shared key insights and figures in this article. Dive in to see how the money coming into private markets may be changing in the future. 33% of investment institutions believe that retail fund like vehicles will make up around half of the flow into private markets assets within the next 2-3 years. Derrick Johns discusses expectations for ELTIF and LTAF, the development of the market, regulations, borrowing costs and more in this insightful article! Read more here 👉 http://spr.ly/6043YrzFS #privatemarkets #assetmanagement #wealthmanagement #investments #privateassets

High-net-worth individuals (HNWIs) are increasingly interested in alternative investments, according to a recent survey by Brookfield Oaktree Wealth Solutions. The survey found that 88% of current alternative investors are open to increasing their allocations, while 78% are looking to diversify their investments further. Additionally, 81% believe that having an allocation in alternatives will lead to stronger long-term outcomes compared to traditional portfolios. For those not currently invested in alternatives, 72% expressed interest if they had a better understanding of the options available, and 70% would consider it if recommended by their financial advisors. Financial advisors also see the value, with 72% stating that expertise in alternative investments is crucial for growing their business https://lnkd.in/e5Tb6xyN

A Vanguard Canada survey reveals 74% of investors feeling their advisor is worth the fees. However, younger investors (18-34) are increasingly using online platforms, with 40% opting for digital management. https://hubs.la/Q02TG-JQ0 #FinancialAdvice #Investing #WealthManagement

Unit trust investments are increasingly recognized as an effective vehicle for wealth accumulation in today's financial markets. A unit trust is a collective investment scheme that aggregates capital from multiple investors to create a diversified portfolio, which may include equities, fixed income securities, and real estate assets. One of the foremost advantages of unit trusts is diversification. For instance, if an investor allocates funds to a unit trust that invests in a mix of technology stocks, government bonds, and real estate, the risk is spread across various asset classes. This means that if the technology sector underperforms, the losses may be offset by gains in the bond or real estate sectors, thereby reducing overall investment risk. Professional management is another significant benefit. Unit trusts are overseen by experienced fund managers who conduct in-depth market analysis and research. For example, a fund manager may identify emerging markets with high growth potential and allocate funds accordingly, providing investors access to opportunities they may not have considered independently. Liquidity is also a key feature of unit trusts. Investors can typically buy or sell units on a daily basis, ensuring that they have access to their funds when needed. For example, if an investor needs to withdraw funds for an unexpected expense, they can easily redeem their units without facing lengthy delays. Moreover, unit trusts often have lower minimum investment thresholds, making them accessible to a broader range of investors. For instance, some unit trusts allow investments starting as low as Tzs 10,000/= enabling individuals to begin their investment journey without significant capital. In summary, unit trust investments present a strategic approach to wealth management through diversification, professional oversight, and liquidity. They serve as a valuable option for both novice and seasoned investors looking to navigate the complexities of the financial landscape. #Investing #Finance #WealthManagement #UnitTrusts #InvestmentOpportunities #Diversification #FinancialLiteracy #SmartInvesting

We’re excited to share with you our Global Private Markets Review 2024, “Private markets: a slower era. Our research finds 2023 was another difficult year for private markets. Macroeconomic headwinds persisted throughout the year, with rising financing costs and an uncertain growth outlook taking a toll on private markets. Full-year fundraising continued to decline from 2021’s lofty peak, weighed down by the “denominator effect” that persisted in part due to a less active deal market. Managers largely held onto assets to avoid selling in a lower-multiple environment, fueling an activity-dampening cycle in which distribution-starved limited partners (LPs) reined in new commitments. Performance in most private asset classes remained below historical averages for a second consecutive year. Decade-long tailwinds from low and falling interest rates and consistently expanding multiples seem to be things of the past. Still, recent surveys indicate that LPs remain broadly committed to private markets. In fact, the majority plan to maintain or increase allocations over the medium to long term. As private market managers look to boost performance in this new era of investing, a deeper focus on revenue growth and margin expansion will be needed now more than ever.