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Spectrum Q3 2022

Have alternatives gone mainstream?

20 October 2022 |
Active ESG
Private markets’ inherently long-term outlook allows investors to dampen but not remove some of the volatility that can characterise public markets and stay focused on the fundamentals of any business.
Spectrum Q3 2022: Have alternatives gone mainstream?

Over the last decade, private markets have expanded and matured and now make up a significant aspect of global finance, accounting for almost a tenth of global investable assets. As a result, an increasing number of investors are open to a trade-off: less liquidity in exchange for higher returns in longer-term investments such as real estate, infrastructure, private equity and private debt.

Fast reading

  • Direct lending transaction volumes are correlated to the dry powder raised by private equity funds, which currently sits at record highs.
  • Many infrastructure assets have a contractual linkage to inflation, while the attraction of real estate debt can increase during periods of rising rates.
  • There has nonetheless been a slowdown in private market activity this year as investors become more cautious about the macroeconomic outlook and events in the public markets.

Spectrum Q3 2022: Have alternatives gone mainstream?

Spectrum Q3 2022: Have alternatives gone mainstream?

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