Is There a New Case for Private Assets and Angel Investing?

Karen Wendt, SFTL President & expert in responsible, impact and sustainable investing

https://www.linkedin.com/in/profkarenwendt/

Is There a New Case for Private Assets and Angel Investing?

What has changed in the environment and trends that may encourage investing in alternatives?

Because the macroenvironment is a significant factor at play, it is impossible to assess the significance of private assets in asset allocations in isolation. In our opinion, the post-pandemic world offers a new macroequilibrium that necessitates a response.

The pre-pandemic level is expected to be exceeded by inflation, boosting the threshold for maintaining buying power. So you can only increase wealth by making the inflation effect work for you. It is possible to argue that future volatility will be higher. Probably yes.  In a future where markets are less trend-driven and returns from passive betas are lower, active management will be more important.

Due to the threat of lower-than-average returns and the urgent need for diversity, investors have sought out private assets to fill out their portfolio allocations. This has made alternatives attractive. In the cases of innovation, fintech start-ups, blockchain solutions, tokenization, infrastructure, some types of private debt, real estate, and natural resources, this is especially pertinent.

Although private assets represent a component of an overall active allocation, it would be incorrect to believe that they are the exclusive source of active returns. The march towards increasing private exposure has been motivated by the pursuit of diversification. However, it is still wise to invest both in private and public markets.ow do I find the right mixture and strategy? Well, in essence, a core-satellite strategy might be a useful first step.

Presseportal: https://www.presseportal.ch/de/nr/100096065https://swissfintechladies.ch/blog/