Alternatives

The Morningstar-owned private markets publication Pitchbook this week highlighted the growing risks in the economy along with the potential impact of higher interest rates on the popular venture capital and private equity sectors.

From Covid to conflict, all it took was just a few weeks for the market to shift its attention to the unfolding crisis in Ukraine and away from the pandemic.

Private equity is eating the ASX alive. Nearly every other month there is another billionaire dollar private equity approach of an ASX company.

Private credit has been gathering pace both globally and in Australia, growing rapidly as businesses start to recognise the unique benefits of private lending and the opportunity that changing conditions in the banking sector provides.

Ruffer LLP’s single strategy approach, which is a multi-asset class, diversified fund seeking to deliver consistent returns and limit drawdowns in every market cycle is increasingly rare in an environment dominated by thematics.

Alternative investments are gaining popularity, mainly due to their low correlation to more traditional assets such as stocks and bonds.

The VIX Volatility Index or Fear Index hit a 52-week high of 38.94 last week after $65bn was wiped off the Australian share market.

Amid ongoing elevated volatility, some financial advisers are recommending that investors hold alternative investments, including market neutral funds, which could help cushion portfolios against a broad market sell-off.

Government policy continues to lag private markets when it comes to the energy transition, with Federation Asset Management’s latest deal to buy two battery assets a sign of the things to come.

ESG investing and everything that comes with it have grown in both popularity and importance in recent years.

Demand for venture capital (VC) has soared in recent years amidst expectations for more muted public-market returns. Late-stage VC sits between VC and traditional private equity (PE), and is focused on backing the rapidly growing segment of already-successful companies with established market share, and typically exhibiting $50 million or more in revenue. “The number of…

Magellan Financial Group (ASX:MFG) has remained in the headlines on a near daily basis, with continued uncertainty around the return of CIO and Founder Hamish Douglass. With outflows in recent months exceeding $20 billion, which is more than most fund managers in Australia hope to manage, naturally the attention has been heavily focused on the…