Alternatives Decoded
Overview
Explore iCapital’s Alternatives Decoded for a wide-ranging and up-to-date analysis of the alternative investment landscape. Review the latest updates on absolute and relative market performance, assets under management (AUM), fund flow trends, deal activity, and much more. Gain insights into private equity, private credit, commercial real estate, infrastructure, hedge funds, structured investments, and annuities.
Alternatives Decoded
Private Equity
Private equity has historically been able to generate consistent outperformance versus public equities with less downside. Today, the opportunity set is larger than ever, as private equity provides access to a larger universe of investment opportunities compared to public equity. We believe private equity offers investors an opportunity to tap into a large pool of innovation with multiple paths of value creation.
Alternatives Decoded
Private Credit
Private credit is now a genuine alternative to bank lending and the syndicated market. An important part of the near-term investment thesis is favorable yields. However, in the longer term, the secular decline in lending by traditional credit providers holds the potential to increase the addressable market from primarily lending to many more forms of credit such as asset-backed and residential mortgage.
Alternatives Decoded
Commercial Real Estate
Commercial real estate offers a broad set of diversified opportunities that provide low correlation to the public markets. In fact, the size of this market is often underappreciated. Despite some concerns about the state of real estate, many sectors have solid underlying fundamentals that can serve as a core source of income and potential price return.
Alternatives Decoded
Infrastructure & Other Real Assets
The appeal of infrastructure and real asset strategies is the low to negative correlation relative to stocks and bonds, and higher risk-adjusted returns due to the contractual, inflation-protected cash flow nature of the investments. Infrastructure, in particular, has gained attention in recent years with the recognition that there exists a significant “funding gap” underpinned by growing public deficits and increasing need for digital transformation and energy transition.
Alternatives Decoded
Hedge Funds
Hedge funds employ several different strategies that can help position investors for various market conditions. Current trends, such as positive stock-bond correlations, elevated interest rates, and higher asset dispersion, can help improve risk-adjusted returns and offer substantial diversification benefits when adding hedge funds to a traditional portfolio.
Alternatives Decoded
Structured Investments
The volume growth in structured investments has steadily increased as investors have looked for vehicles that offer upside participation and/or yield enhancement potential while maintaining a degree of principle protection. More recently, activity in the equities market has led to growth-oriented solutions outpacing their income-oriented counterparts.
Alternatives Decoded
Annuities
The annuity industry has experienced sturdy growth in recent years due to rising interest rates and changing age demographics. We expect a growing part of the investing population to prioritize avoiding losses over earning gains and that should continue to provide a secular tailwind for annuities in the future.
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Page Index
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Page Index
Alternatives Decoded
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Alternatives Decoded
Alternatives hold $16.7 trillion in assets under management globally across strategies
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Alternatives hold $16.7 trillion in assets under management globally across strategies
Alternatives have grown significantly and are projected to grow further in years ahead
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Alternatives have grown significantly and are projected to grow further in years ahead
Alternatives fundraising activity is stabilizing and increasing in certain asset classes
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Alternatives fundraising activity is stabilizing and increasing in certain asset classes
Dry powder has declined to $3.8 trillion as committed capital begins to get deployed globally
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Dry powder has declined to $3.8 trillion as committed capital begins to get deployed globally
Deal momentum is rebounding to more normalized levels as GPs put dry powder to work
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Deal momentum is rebounding to more normalized levels as GPs put dry powder to work
Alternatives offered strong outperformance vs. traditional 60/40 portfolio over time
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Alternatives offered strong outperformance vs. traditional 60/40 portfolio over time
Over the next decade, alternatives are projected to outperform their public counterparts
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Over the next decade, alternatives are projected to outperform their public counterparts
Several private market strategies offer higher yields than those available in public markets
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Several private market strategies offer higher yields than those available in public markets
Alternatives can be a powerful diversifier due to their low correlation to public markets
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Alternatives can be a powerful diversifier due to their low correlation to public markets
Alternatives offer higher returns and lower volatility vs. a traditional 60/40 portfolio
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Alternatives offer higher returns and lower volatility vs. a traditional 60/40 portfolio
Manager selection has been an important driver of return outcomes in alternatives
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Manager selection has been an important driver of return outcomes in alternatives
Several private market strategies are inexpensive relative to public markets and history
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Several private market strategies are inexpensive relative to public markets and history
Private clients to increase alternatives allocation from $4 trillion to $13 trillion by 2032
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private clients to increase alternatives allocation from $4 trillion to $13 trillion by 2032
Opportunity to increase allocation is sizable given low portfolio allocation & advisor use
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Opportunity to increase allocation is sizable given low portfolio allocation & advisor use
Private Equity
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private Equity
Private equity is the largest asset class within alternatives and has grown significantly
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private equity is the largest asset class within alternatives and has grown significantly
Since 2000, fewer companies went public as they have stayed private for longer
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Since 2000, fewer companies went public as they have stayed private for longer
Private companies outnumber publicly traded ones, across most revenue segments
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private companies outnumber publicly traded ones, across most revenue segments
Private markets offer investors an opportunity to tap into a larger pool of innovation
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private markets offer investors an opportunity to tap into a larger pool of innovation
Private equity outperformed public equities over various time horizons
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private equity outperformed public equities over various time horizons
Private equity delivered more consistently positive returns with fewer negative years
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private equity delivered more consistently positive returns with fewer negative years
Private equity performance improved when investing during downturn year vintages
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private equity performance improved when investing during downturn year vintages
Private equity fund managers have multiple ways to create value vs. public markets
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private equity fund managers have multiple ways to create value vs. public markets
Private equity valuations have stabilized and are lower than public markets in the U.S.
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private equity valuations have stabilized and are lower than public markets in the U.S.
Fund managers have adjusted to higher cost of capital by reducing the use of leverage
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Fund managers have adjusted to higher cost of capital by reducing the use of leverage
Realization of further rate cuts may help improve levered company financials
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Realization of further rate cuts may help improve levered company financials
Private equity exit activity is recovering given higher valuations in public markets
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private equity exit activity is recovering given higher valuations in public markets
Capital markets activity is gradually improving across both IPO and M&A markets
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Capital markets activity is gradually improving across both IPO and M&A markets
Extended holding periods increase the need for sources of liquidity
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Extended holding periods increase the need for sources of liquidity
Growth in private equity secondaries is driven by strong supply/demand dynamics
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Growth in private equity secondaries is driven by strong supply/demand dynamics
Private Credit
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private Credit
Private credit assets under management have grown rapidly to record levels
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private credit assets under management have grown rapidly to record levels
Secular decline in bank lending is being driven by regulation, capital requirements
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Secular decline in bank lending is being driven by regulation, capital requirements
Growth in private equity buyout strategies drives further demand for private credit
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Growth in private equity buyout strategies drives further demand for private credit
Private credit strategies historically outperformed public fixed income sectors
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private credit strategies historically outperformed public fixed income sectors
Direct lending offered favorable risk-adjusted returns versus public fixed income
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Direct lending offered favorable risk-adjusted returns versus public fixed income
Private credit drawdown risk is moderated by buy-and-hold nature, fewer dislocations
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private credit drawdown risk is moderated by buy-and-hold nature, fewer dislocations
Risk premium, complexity and market inefficiencies provides a backdrop for attractive yields
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Risk premium, complexity and market inefficiencies provides a backdrop for attractive yields
Direct lending spreads recently widened, moving closer to historical excess spread
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Direct lending spreads recently widened, moving closer to historical excess spread
Income has been a steady component of private credit returns over time
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Income has been a steady component of private credit returns over time
Credit losses for private credit have been in line with high yield and bank loan issuers
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Credit losses for private credit have been in line with high yield and bank loan issuers
Private credit coverage ratios are improving, which could help keep defaults in check
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private credit coverage ratios are improving, which could help keep defaults in check
Lower volatility, high income led to more consistently positive results for private credit
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Lower volatility, high income led to more consistently positive results for private credit
Commercial Real Estate
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Commercial Real Estate
CRE is a large, diversified asset class with growing interest from private capital investors
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
CRE is a large, diversified asset class with growing interest from private capital investors
CRE has had low correlation to and better risk-adjusted returns than public markets
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
CRE has had low correlation to and better risk-adjusted returns than public markets
Private real estate had less frequent drawdowns, which helped deliver returns overtime
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private real estate had less frequent drawdowns, which helped deliver returns overtime
Growth in net operating income (NOI) has outpaced inflation and served as a core return driver
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Growth in net operating income (NOI) has outpaced inflation and served as a core return driver
Commercial real estate prices corrected sharply, but the recovery process is underway
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Commercial real estate prices corrected sharply, but the recovery process is underway
Cap rates reset higher as the Fed raised interest rates, but remain low relative to bond yields
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Cap rates reset higher as the Fed raised interest rates, but remain low relative to bond yields
NOI growth is slowing from high levels but is still roughly above long-term averages and inflation
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
NOI growth is slowing from high levels but is still roughly above long-term averages and inflation
Most CRE sectors have solid fundamentals, with the exception of weakness in office
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Most CRE sectors have solid fundamentals, with the exception of weakness in office
Concerns are high about the upcoming wall of maturities and rising delinquencies
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Concerns are high about the upcoming wall of maturities and rising delinquencies
Lower use of leverage and higher debt coverage ratios offset some of these concerns
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Lower use of leverage and higher debt coverage ratios offset some of these concerns
Banks have pulled back from CRE lending leaving a sizable debt funding gap
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Banks have pulled back from CRE lending leaving a sizable debt funding gap
CRE debt funds with ample dry powder should help partially fill the void
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
CRE debt funds with ample dry powder should help partially fill the void
Infrastructure, Other Real Assets
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Infrastructure, Other Real Assets
Infrastructure is a globally diverse asset class with significant fund assets in Europe
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Infrastructure is a globally diverse asset class with significant fund assets in Europe
Investors can consider four broad categories of infrastructure with varying characteristics
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Investors can consider four broad categories of infrastructure with varying characteristics
Private real assets have produced superior risk-adjusted returns with low correlation
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Private real assets have produced superior risk-adjusted returns with low correlation
Real assets have delivered returns outpacing developed market inflation
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Real assets have delivered returns outpacing developed market inflation
Real assets provided higher returns during periods of moderate to high inflation
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Real assets provided higher returns during periods of moderate to high inflation
Global economies are set to spend $3.2 trillion per year on infrastructure through 2040
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Global economies are set to spend $3.2 trillion per year on infrastructure through 2040
There is a widening gap between projected infrastructure spending and society’s needs
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
There is a widening gap between projected infrastructure spending and society’s needs
U.S. and Europe have significantly stepped up their infrastructure-related investments
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
U.S. and Europe have significantly stepped up their infrastructure-related investments
Digitization and growth in data centers is one of the prominent themes in infrastructure
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Digitization and growth in data centers is one of the prominent themes in infrastructure
The investment need for additional decarbonized power generation is growing
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
The investment need for additional decarbonized power generation is growing
Hedge Funds
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Hedge Funds
Hedge fund AUM has rebounded and has hovered near record levels
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Hedge fund AUM has rebounded and has hovered near record levels
Different hedge fund strategies can help position for various market conditions
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Different hedge fund strategies can help position for various market conditions
Similar number of hedge fund launches and liquidations highlight selection importance
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Similar number of hedge fund launches and liquidations highlight selection importance
A traditional 60/40 portfolio is not offering the “natural” diversification it once did
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
A traditional 60/40 portfolio is not offering the “natural” diversification it once did
Historically, adding hedge funds to traditional portfolios has improved risk/return
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Historically, adding hedge funds to traditional portfolios has improved risk/return
Over time, hedge funds offer equity-like results with less downside risk
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Over time, hedge funds offer equity-like results with less downside risk
Hedge funds have generally performed better during periods of elevated rates
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Hedge funds have generally performed better during periods of elevated rates
Hedge fund opportunities increase in periods of higher equity dispersion, low correlation
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Hedge fund opportunities increase in periods of higher equity dispersion, low correlation
Despite the recent compression in index spreads, distressed credit opportunities exist
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Despite the recent compression in index spreads, distressed credit opportunities exist
Volatility can be a driver of returns for hedge funds; rate volatility remains elevated
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Volatility can be a driver of returns for hedge funds; rate volatility remains elevated
Structured Investments
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Structured Investments
Structured investment volumes in the private wealth channel have grown over time
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Structured investment volumes in the private wealth channel have grown over time
Payoff structures for market-linked growth and income notes
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Payoff structures for market-linked growth and income notes
Types of protection available in structured investments
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Types of protection available in structured investments
Full principal protection demand is a function of equity levels and bond yields
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Full principal protection demand is a function of equity levels and bond yields
Preference for types and investment terms of structured investments varied over time
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Preference for types and investment terms of structured investments varied over time
Preference for type of protection and type of underlying asset evolved over time
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Preference for type of protection and type of underlying asset evolved over time
Structured investment returns and pricing are dynamic, fluctuate with market conditions
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Structured investment returns and pricing are dynamic, fluctuate with market conditions
Interest rates have moved lower, credit spreads are tighter than a year ago
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Interest rates have moved lower, credit spreads are tighter than a year ago
After drifting lower over the past year, volatility has recently spiked, correlations declined
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
After drifting lower over the past year, volatility has recently spiked, correlations declined
Annuities
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Annuities
The annuity industry experienced strong growth as rates rose in recent years
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
The annuity industry experienced strong growth as rates rose in recent years
Secular demand for annuities is also driven by rising population of age 65 and over
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Secular demand for annuities is also driven by rising population of age 65 and over
Index Definitions 1
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Index Definitions 1
Index Definitions 2
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Index Definitions 2
Index Definitions 3
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Index Definitions 3
Index Definitions 4
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Index Definitions 4
Index Definitions 5
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Index Definitions 5
Important Information
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Important Information
Attributions 1
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Attributions 1
Attributions 2
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Attributions 2
Attributions 3
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Attributions 3
Global Alternatives Strategy and Research Team
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Global Alternatives Strategy and Research Team
Alternatives Decoded
Overview
Private Equity
Private Credit
Commercial Real Estate
Infrastructure & Other Real Assets
Hedge Funds
Structured Investments
Annuities
Important Information
Alternatives Decoded
Cover Page
Page Index
Overview
Alternatives Decoded
Assets Under Management
AUM by Asset Class
Fundraising
Dry Powder
Deal Activity/Entries
Returns by Strategy
Projected Performance
Yields
Cross Asset Correlations
Risk/Return
Dispersions
Relative Valuations
Private vs. Institutional
Allocation to Alternatives
Private Equity
Private Equity
Assets Under Management
IPO Trends
Private Company Trends
Private-to-Public Company Ratio
Returns
Downside Protection
Return Dispersion
Value Creation
Valuations
Leverage
Leverage/Rate Sensitivity
Exit Activity
IPO and M&A Activity
Holding Periods and Secondaries
Secondaries Market
Private Credit
Private Credit
Assets Under Management
Bank Lending
Dry Powder/Lending
Returns by Strategy
Risk-Adjusted Returns
Drawdown Risk
Yields
Yield Decomposition
Return Decomposition
Credit Losses
Coverage Ratios
Total Returns
Commercial Real Estate
Commercial Real Estate
Market Overview
Correlations and Returns
Drawdowns and Returns
Net Operating Income (NOI)
Property Prices
Cap Rates
NOI by Property Type
Sector Fundamentals
Maturities and Delinquencies
Leverage
Bank Lending
Debt Funds and Yields
Infrastructure & Other Real Assets
Infrastructure, Other Real Assets
Market Overview
Transaction Overview
Correlations and Returns
Returns by Strategy
Performance in Higher Rate Periods
Infrastructure Spend
Infrastructure Spend Gap
Investments by Geography
Data Center Overview
Power Generation Overview
Hedge Funds
Hedge Funds
Assets Under Management
Returns by Strategy
Fund Launches and Closures
Stock/Bond Correlation
Comparative Risk/Return
Historic Performance
Performance in Higher Rate Periods
Stock Dispersion
Credit Stress and Strategy
Asset Volatility
Structured Investments
Structured Investments
SI Volumes
Scenario Payoff Structures
Protection Types
Full Principal Protection
Income vs. Growth Structures
Mix of Protection Types
Market Variables
Credit Spreads
Volatility and Correlations
Annuities
Annuities
Market and Product Overview
Annuity Spreads
Important Information
Index Definitions 1
Index Definitions 2
Index Definitions 3
Index Definitions 4
Index Definitions 5
Important Information
Attributions 1
Attributions 2
Attributions 3
Research Team
End
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