Investors Plan Bigger Alternative Allocations in ‘Choppy’ Markets’

In Christine Idzel’s, article “Investors Plan Bigger Alternative Allocations in ‘Choppy’ Markets” published for Institutional Investor, which is a leading international business to business publisher, focused primarily on institutional investors, she stated, “Amid a volatile stock market, investors are planning bigger allocations to alternative assets.”

At least 77 percent of investors expect to maintain or increase their capital commitments across alternatives this year, according to a Preqin report. The percentage rises to 81 percent over the longer term, with private equity benefiting the most from planned increases to alternative investments.

Choppy waters are ahead, and the industry is not immune to trouble, but for now investors are still seeking alternatives,” Preqin content head Nicole Lee said in a statement. “If anything, with the current Covid-19 and Geo-political environment increasing a volatile stock market, we may yet see increases in investor’s appetite for alternative assets.”, stated Michael “Q” Quatrini, CEO of Capital Q Ventures, a Specialty Alternative Investment Manager.

Investors like the gains they’ve been getting from private equity and continue to have high expectations from the asset class, according to Preqin. The industry’s funds from vintages 2007 to 2016 have produced a median net return of 14.9 percent, the largest gains in private capital, the firm said in the report.

We believe closed-end specialty hedge funds, such as Tri-Party Venture Funds®,” said Quatrini, “which we believe are a captivating subset of Private Equity has the potential to overshadow the private equity industry.”  By capturing what these Fund Managers have determined “best of breed” Venture Partners, in several desired industries, and then deploying investor capital consistently over the life of these funds, by tightly following the funds’ investment thesis, makes a truly compelling investment proposition, for anyone seeking a non-correlated, risk-averse allocation.  Funds being disciplined in their investment criteria, not only throughout their Venture Partner selection process but with the Fund Managers comprehensively assessing historical and ongoing performance, by demanding embedded analysts to ensure each Venture Partner maintains expected results, is the critical gauge to the Fund’s success.  Once launched, when managed correctly, Tri-Party Venture Funds® should generally provide low asset volatility, whilst supporting above-market risk-adjusted returns to investors.

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