Asset Allocation in a Higher-for-Longer Interest Rate Environment
Asset Allocation in a Higher-for-Longer Interest Rate Environment As a result of the unrelenting increase in yields to maturity since the summer of 2020, the expected rate of return of fixed income portfolios has improved considerably. The aggressive interest rate hikes seen over the past 12 months have also enhanced the return of short-term money […]
Private Credit Strategies for Times of Dislocation
Private Credit Strategies for Times of Dislocation As uncertainty, tail risks, and macroeconomic weaknesses rise, the private credit markets could offer opportunities that savvy and skilled investors may be able to capture. Over the past 25 years, opportunities and returns in special situations and distressed debt have usually been the best1 in times of major […]
A Bright Spot On The Horizon
A Bright Spot On The Horizon With a challenging backdrop of geopolitical instability, rising inflation, and public market volatility, 2022 has proven to be a difficult environment for private markets investing. However, there is a bright spot on the horizon, as a confluence of factors is expected to provide favorable conditions for private equity secondaries. […]
AltamarCAM’s Views on Recent Evolution of Private Assets’ Valuation
AltamarCAM’s Views on Recent Evolution of Private Assets’ Valuation In the following video, Miguel Zurita, Managing Partner at AltamarCAM, comments on the more favorable private assets valuation evolution against public markets in 2022. IMPORTANT NOTICE: This document has been prepared by Altamar CAM Partners S.L. (together with its affiliates “AltamarCAM“) for information and illustrative purposes […]
Harvesting Illiquidity Premia in Credit
Harvesting Illiquidity Premia in Credit The traditional 60/401 portfolio is dominated by equity risk and term premiums. Investors stand to harvest additional sources of risk premia by moving out of a traditional 60/40 portfolio into private asset classes, even in a high interest rate environment. This risk premia could represent compensation in excess of the […]
Infra – Embedded Resilience
Infra – Embedded Resilience Infrastructure is an investable asset class which comprises assets that are essential to guaranteeing competitiveness and providing basic services. It offers valuable resilience and low volatility in today´s environment thanks to the visibility of its long-term cash flows. Most revenues are based on contracts and business models that are indexed to […]
The Operational Resilience of PE Firms
The Operational Resilience of PE Firms Private assets offer a safe harbor to today´s volatility in traditional 60/40 assets. The resilience of private equity in such environments is not a mirage due to mark-to-model valuations or a growth sector bias. We find empirical evidence that supports the view that the observed volatility of private equity1 […]
Private Equity Performance Across the Cycle
Private Equity Performance Across the Cycle In our June 2022 newsletter, we took a look at the multiyear deployment pace of private equity funds. As just 40% of the capital is deployed over the first three years, we encouraged investors to devise a sound and realistic long-term investment strategy. We now focus on the performance […]
Staying invested
Staying invested There is a little secret in private asset investing that amateurs do not seem to fully appreciate. The challenge in private assets is not about getting your money back. Actually, the challenge is about staying invested as you will indeed get your money back unlike any traditional asset class, where you can stay […]
Hedging Inflation Through Real Assets
Hedging Inflation Through Real Assets The post COVID-19 global economic rebound and the Ukraine war have triggered a sharp increase in prices, wages, and energy costs that are pushing inflation rates back up to levels not seen for decades. We have been ushered into a new macroeconomic paradigm characterized by permanently higher inflation and interest […]
