2023年全球私募市場調(diào)查報(bào)告

200+

institutions,surveyingseniorexecutivesresponsibleforprivatemarketsallocations*

22

countries*

US$15T

intotalAUMwithUS$3.2trillioninvestedinprivatemarkets*

Publicpensions,corporatepensions,insurers,familyoffices,foundationsandendowments,andsovereignwealthfunds*

03

Introduction

09

Investmentviews

05

Privateassetallocations

12

Accessingprivatemarkets

*Interviewsconductedbythird-partyconsultancyiResearchServices.ResponseswerereceivedfromOctober2022throughJanuary2023.

Note:Numbersinchartsmaynotalwaysaddto100%duetorounding.

ALTM0423U/M-2841287-2/20

Risingtomeetinvestorneeds

EdwinConway

GlobalHead,BlackRockAlternatives

WelcometothefirstBlackRockAlternativesGlobalPrivateMarketsSurvey.Overthepast20years,wehaveseenprivatemarketsgrowfromanichecategorywithroughlyUS$700billioninassetstoacornerstoneofmanyportfolios,worthmorethanUS$13trillion1.

Formanyinvestors,privatecredit,privateequity,infrastructureandrealestatearenolongerconsideredalternativebut,infact,acorecomponentofthemoderninvestmentportfolio.Andwhileprivatemarketshaveexperiencedanextendedperiodofrapidgrowth,theseassetclassesarenotimmunetotheconditionsthathavebeenimpactingtheirpublicmarketcounterpartsoverthepastyearorso.

Againstthisbackdrop,wesurveyedcapitalallocatorsacrosstheglobetounderstandhowtheyareconstructingtheirportfoliosinthenewregime.

Welearnedthatinvestorsbelieveshort-termuncertaintyisn’tenoughtoderailthegrowthofprivatemarkets.Whiletherecentbankingturmoilhasraisednewconcernsamonginvestors,theconversationsI’vehadsuggestthatclientsarefocusedonnavigatingthecurrentcyclewithcautionandcare,albeitwithaneyetowardscapturingopportunities.Evenamidheightenedvolatilityanduncertainty,investinginareassuchasrenewableenergy,matureprivatecompaniesanddirectlending-ventureandmiddlemarketdebtinparticular–canprovideaballasttoportfolios.

Sophisticatedinvestorshavelongabandonedthe60/40assetallocationmodel.Amongourrespondents,privateassetsrepresentanaverage24%ofportfolios.Incomegenerationisakeyallocationdriver–citedby82%ofthosewesurveyed.Thesearchforyieldintheyearssincetheglobalfinancialcrisis,asinterestrateshithistoriclows,isafamiliarstory.Thesurveyresultstellus,however,thatevenwithratesrisingandworriesaboutapossiblerecessionthisyear,institutionscontinuetoseeprivateassetsasessentialtoolstohelpmeettheirincomeneeds.

Inthefollowingpages,wedetailwhererespondentsseethebiggestopportunitiesacrossprivateassetclasses,exploretheirprioritieswhenaccessingthemarketsandexplainwhattheylookforwhenchoosingtheirinvestmentmanagers.

We’dliketothanktheinvestorsaroundtheworldwhotookthetimetoparticipateinthesurvey.Andwehopethatyoufindtheresultsbothinsightfulanduseful.

Source:1.Preqin,June2022.

FORPROFESSIONAL,INSTITUTIONAL,WHOLESALEANDQUALIFIEDINVESTORS/PROFESSIONAL,QUALIFIEDANDPERMITTEDCLIENTUSEONLY3

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Keytakeaways

Privateassetallocations

?Ourrespondents’averageportfolioallocationtoprivatemarketsis24%.

?Incomegenerationisthetopreasonforinvestorsallocatingtoprivatemarkets,withcapitalappreciationrankedinsecondplace.

?Investorsplantoincreasetheirallocationstomostprivateassetsthisyear.

Investmentopportunities

?Respondentsseeinfrastructureandrealestatedebt,nicherealestate(suchasdatacenters)andmatureprivatecompaniesassomeofthebiggestinvestmentopportunities.

Accessingprivatemarkets

?Liquidityconcernsarethemainbarrierwhenitcomestoinvestinginprivatemarkets.

?Sourcingisthetoppriorityforinvestorswhenselectingaprivatemarketsmanager.

FORPROFESSIONAL,INSTITUTIONAL,WHOLESALEANDQUALIFIEDINVESTORS/PROFESSIONAL,QUALIFIEDANDPERMITTEDCLIENTUSEONLY4

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Respondentsallocateanaverage24%toprivatemarkets

PrivatemarketsinvestmentsRestofportfolio

TheinstitutionsinoursurveyholdacombinedUS$3.2trillioninprivateassets,one-fourthoftheUS$13-trillion1globalmarket.

Asthenextpageshows,thoseholdingsaresettoriseasinvestorsplantoincreasetheirallocationsacrossassetclasses.

TheheadofprivateassetsataU.S.-basedinsurersaidthegrowthisduetobothsupplyanddemand.

Privatemarketsappealtocorporations,whocanstayoutoftheglareofequitymarketsandareabletonegotiatefinancingdirectly.Andprivatemarketsofferavarietyofstructuresforinvestors,hesaid,astheytrytomeettheirinvestmentgoals.

“Ithinkyou’llhavecontinuedsteadygrowthandflow,asthere’slikelygoingtobeemergingnewsubsetsandtypesofprivateassets,aswellaspotentialsupply,”agreedtheCIOofaU.S.publicpensionplan,whosefundhasabout10%investedinprivateassets,butisincreasingitsallocation.

Itremainstobeseenhowrecentbankingturmoilwillaffectprivatemarkets.Butoneinvestorsaidtheydon’tseeitassomethingthatwillchangetheirlong-termplans.

“Idon'tthinkanybodyhasreallychangedtheirplanoverthenextthreeyearsbecauseofwhat'shappenedrecently.Weseeitasbeingtheresultoffactorsthatarealreadypartofourplanning–risingrates,aslowingeconomy,higherinflation,”saidaprivatemarketsinvestorataU.S.corporatepension.“Itwasmoreasignofongoingtrendsthananewpieceofinformation.”

Q.Whatpercentageofyourportfolioiscurrentlyallocatedtoprivatemarkets?

Byregion

APAC

EMEA

U.S.&

Canada

16%

27%

28%

24%

Global

76%

Source:1.Preqin,June2022.

FORPROFESSIONAL,INSTITUTIONAL,WHOLESALEANDQUALIFIEDINVESTORS/PROFESSIONAL,QUALIFIEDANDPERMITTEDCLIENTUSEONLY5

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Institutionsplanmoreprivateassetallocationsthisyear

Long-termtrendsaroundcorporatechoicesandthegrowthofinvestibleassetsareboostingprivatemarketsallocations.Therearealsomoreimmediatefactors.

“Privateequityvintagesthatinvestduringdownturnstendtooutperform,accordingtoourresearch,”saidJohnSeeg,GlobalCo-HeadofPrivateEquityPartnersatBlackRockAlternatives.And43%ofrespondentssaytheyplanto“substantiallyincrease”theirprivateequityholdingsthisyear–thoughitremainstobeseenifrecentupheavalshavechangedthatoutlook.

AportfoliomanagerwhospecializesinalternativesataU.S.corporatepensionsaidtheheightenedinterestinprivateequitymayalsobeduetothefactthatmanyinstitutionshadtopullbacklastyearaspublicvaluationsplunged,leavinginvestorsoverweightinprivatemarkets.

“Iknowfromtalkingtomypeersthatthedenominatoreffectreallyworkedagainstnewallocationsinthespace,”hesaid.Asportfoliosrebalanced–whetherduetoexits,revaluationsofprivateholdingsortheimprovedperformanceofpublicmarkets,“there’smorecapacitythisyear.”

Inprivatecredit,36%ofU.S.andCanadarespondentssaytheywill“substantiallyincrease”theirallocations,while68%ofthoseintheAsia-Pacificregionplananincrease.

AportfoliomanagerataSwisspensionfundsaidhebelievesthatprivatecreditwilltakeupanincreasingshareofinvestorportfoliosintheyearsahead.

“Inthesamewaythatprivateequityisgainingalotoftractionandtakingawayfromthepublicorlistedequityallocation,Ithinkyou’reseeingthatonthecreditsideaswell,”hesaid.

Q.Howdoyouseeyourallocationstoprivateassetclasseschangingin2023?

23%

43%

28%

29%

29%

23%

7%

20%

23%

5%

4%

13%

6%

21%

23%

22%

29%

25%

30%

30%

17%

18%

18%

6%

5%

InfrastructureMulti-alts

solutions

Private

credit

Private

equity

Real

estate

SmalldecreaseSmallincrease

Substantialdecrease

Nochange

Substantialincrease

FORPROFESSIONAL,INSTITUTIONAL,WHOLESALEANDQUALIFIEDINVESTORS/PROFESSIONAL,QUALIFIEDANDPERMITTEDCLIENTUSEONLY6

ALTM0423U/M-2841287-6/20

58%

43%

42%

Note:Respondentsselectedmultipleresponses.

BetterESGdemonstration

Riskdiversification

volatility

Less

16%

Incomeisthemostimportantfactordriving

privatemarketsinvestments

Q.Whatarethemostimportantfactorsdrivingyourallocationtoprivatemarkets?

82%

Incomegeneration

Capitalappreciation

Investorshaveinrecentyearsturnedtoassetclassessuchasprivatecredit,infrastructureandrealestateforincomeinalow-rateenvironment.Evenasmanycentralbanksraiseinterestrates,theappealoftheseassetspersists.

Andwhilehigherratesbodewellforyieldsinpublicmarkets,theyalsoportendevenmoreattractivereturnsforprivatedebtholdersacrossthespectrumoffinancingoptions.

Indirectlending,forexample,mostdealshavefloating-ratestructuresthatleadtohigheryieldsasratesrise.

Andthenatureofdirectlending–whereinvestorsnegotiatewiththeborrowers–bringsseveralotherbenefitstoparticipants.

“Privatecreditdoesn’tjusthelpamplifyincomeandofferdiversification,”saidPhilTseng,Co-HeadofU.S.PrivateCreditatBlackRockAlternatives.

“Thegreaterabilitytodrivedealstructuresandcovenantshasledtostrongerprotections,lowerdefaultsandhigherrecoveriescomparedwithliquidmarkets.”

Andtoday’smarket,withrisingratesandafearofrecession,isalender-friendlyenvironment,accordingtoRajVig,whojointlyrunstheU.S.PrivateCreditteam.“Thatmeansbettertermsforinvestors,”hesaid.

FORPROFESSIONAL,INSTITUTIONAL,WHOLESALEANDQUALIFIEDINVESTORS/PROFESSIONAL,QUALIFIEDANDPERMITTEDCLIENTUSEONLY7

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Andwhilerecentbankingturmoilhasroiledmarkets,itmayalsoprovideanopportunityfortheaddressablemarketofdirectlendingtoexpand,assomeregionalbankstakeamoreconservativeapproachtolending.Directlendingmayalsobemoreappealingtoborrowersgiventhatdealsaren’tsubjecttoabank’sabilitytosyndicatetoawiderangeofinvestors.

Meanwhile,withinflationintheU.S.andelsewhereatitshighestlevelindecades,privateassetscanalsoprovideinvestorswithincomethatrisesinlinewithbroaderpriceincreases.

“Infrastructureinvestmentsaretypicallyresilientthroughmarketcycles,andinparticularduringperiodsofincreasedvolatility,withbuilt-ininflationprotections,”saidMarkFlorian,GroupHeadofInfrastructureFundsatBlackRockAlternatives.

Manyinfrastructure-relatedbusinessesbenefitfrominflation-linkedtariffs,aswellasunderlyingcontractsthatarelinkedtoinflation,Floriannoted.

It’snothardtoseetheappealofincome-generatingassetsformajorinvestors.

“Ifyouthinkofaninstitution,likeapensionfundthathasfixedliabilities,iftheyhavebeneficiariesthatneedthatcapitalalongtheway,timingcashflowsandhavingcashtorecyclethroughtheirsystemcanbeveryimportant,”saidaprivatemarketsspecialistataCanadianfamilyoffice.

Capitalappreciationisanotherleadingfactorforallocatingtoprivatemarkets,accordingtorespondents,particularlyintheU.S.andCanada.

“Fromourpointofviewasafamilyoffice,havingthatcapitalappreciateismuchmoreadvantageoustous,”saidtheprivatemarketsspecialist.“Inbothcases,Ithinkitspeakstothelong-termviewoftheroleofcapitalfromprivatemarketsinvestors.”

Q.Whatarethemostimportantfactorsdrivingyour

allocationtoprivatemarkets?

Byregion

Canada

APAC

EMEA

U.S.&

USCA

84%

62%

54%

35%

8%

87%

19%

39%

46%

9%

78%

50% 73% 43%

25%

IncomegenerationCapitalappreciation

Lessvolatility

RiskdiversificationBetterESGdemonstration

Note:Respondentsselectedmultipleresponses.

PROFESSIONAL,INSTITUTIONALANDWHOLESALEINVESTORS.PROFESSIONALCLIENTSANDQUALIFIEDINVESTORS/QUALIFIEDCLIENTSONLY8

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Thewidearrayofprivateopportunities

Astheyincreasetheirprivatemarketsallocations,investorscanchoosefromanincrediblywideselectionofassetswithdifferentcharacteristics,fromthepotentialappreciationofventurecapitaltothesteadyincomeofferedbytollroads.

“Privatemarketsencompasssomanydifferentareasthattheycanmeetinvestors’needsacrossthetimehorizonofaportfolio,andthroughmarketandeconomiccycles,”saidTarekMahmoud,HeadofMulti-AltsSolutionsatBlackRockAlternatives.

“Butwe’realsoseeingthatinstitutionsarewillingtoconsidertheopportunitiespresentedbycertainassetclassesatmomentsofdislocation–opportunisticanddistressedstrategies,forexample,aswellassecondaries,”hesaid.

Inprivatecredit,investorsseethebiggestopportunitiesininfrastructureorrealestatedebt,drivenbyexpectedtailwindsfromrecentU.S.infrastructurelegislationandwhatsomeseeasatemporarydislocationinpropertyvaluesasaresultofhigherinterestrates.

Distressedstrategiesareaclosesecond,asmanyinvestorsviewapotentialrecessionasacatalyst–especiallyatatimewhenelevatedborrowingcostsarepressuringcorporatebalancesheetsacrossmuchoftheglobe.

DirectlendingispopularinbothEuropeandtheU.S.duetoanexpectationthatmanyofthestructuraldriversofthepastseveralyears–includingitsappealtoinvestorsaswellasborrowers,andhigherbarrierstoentryinthepublicfundingmarkets–willremaininplace.

Q.Wheredoyouseethebiggestopportunitiesineachassetclass?

Privatecredit

51%

Infrastructureorrealestatedebt

50%

Distressed

48%Europeandirectlending

43%Opportunistic

42%Venturedebt

40%U.S.directlending

Note:Respondentsselectedmultipleresponses.

FORPROFESSIONAL,INSTITUTIONAL,WHOLESALEANDQUALIFIEDINVESTORS/PROFESSIONAL,QUALIFIEDANDPERMITTEDCLIENTUSEONLY9

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Meanwhile,thebestopportunitiesininfrastructureareemergingmarkets,transportationandrenewables,accordingtoourrespondents.

“Ithinktherearesuchtailwindsinrenewables,”saidaprivatemarketsinvestorataU.S.corporatepension.

“There’saninsatiabledemandforrenewableenergy,bothfromthetraditionalutilities,andevenmoreso,I’dsay,fromcorporateusers–forexamplesolarhelpingbigtechfirmstryingtomeetnet-zeropledges.”

“There’sawidedemandsetandsuppliesarerampingup–butit'snotanestablishedmarketsotherearemanyopportunitiesforinvestors.”

IntheU.S.,thesectoralsostandstobenefitfromlegislationpassedlastyear,particularlytheInflationReductionAct.

Inprivateequity,mostrespondents–morethanhalfineachregion–seematurecompaniesasthebestopportunity.Venturecapitalisthesecondmost-popularchoice,highlightingthatthere’sstillanappetiteforriskdespitethetumult.

“Ithinkpeoplearecautiousrightnow,somaturecompaniesmakesense,thoughIamalittlesurprisedtoseeventurecapitalsohigh,”saidaportfoliomanagerwhospecializesinalternativesataU.S.corporatepension.

“Butgiventheuncertaintywe’relivingwithandthehighercostofcapital,venturecouldbeseenasariskybutattractiveopportunityifyouhavetherightmanagerandtherightfund,”hesaid.

Speakingingeneralabouttheopportunitiesinprivatemarkets,themanagersaidrisingratesmaycreatemoredispersionacrossassetclasses.

Q.Wheredoyouseethebiggestopportunitiesin

eachassetclass?

Infrastructure

51%47%37%32%

EmergingmarketsTransportationinfrastructure

Renewables

Digitalinfrastructure

Q.Wheredoyouseethebiggestopportunitiesineachassetclass?

Privateequity

56%40%39%34%

MatureVenturecapitalSecondariesBuyouts

companies

Note:Respondentsselectedmultipleresponses.

FORPROFESSIONAL,INSTITUTIONAL,WHOLESALEANDQUALIFIEDINVESTORS/PROFESSIONAL,QUALIFIEDANDPERMITTEDCLIENTUSEONLY10

ALTM0423U/M-2841287-10/20

Q.Wheredoyouseethebiggestopportunitiesin

eachassetclass?

24%isaverycomfortable,long-termnumberthatpeopleshouldhaveinprivatemarkets.”

Financialinstitutioninvestor,Saudi

Arabia

“Ithinkthesmartpeopleinthespacewillbeabletoexcel,butit

won’tbelikeinazero-rateenvironmentwhereeveryonecan

makemoneyfromit,”hesaid.

55%

Residential(multi-

familyandprivate

rental)

Whilenichesectorssuchasdatacentersandcoldstoragefacilitiesareahitwithrespondents,theleastpopularopportunityacrossallcategoriesistheofficesector.

However,eventhiswaschosenby26%ofthosesurveyed–perhapsinvestorscomfortablewithhigherlevelsofriskwhoareconsideringopportunitiestoredevelopbuildingsintomodernofficesorotheruses,suchasresidential.

“Itcomesdowntoamarket-shareplay,andIthinkthosepeoplewiththebestassetscanreallytakemarketshare,”saidtheprivatemarketsinvestorataU.S.corporatepension.

W“ithintheofficesectorthere'sahuge

differentiationbetweennew,modernandenergy-efficientspacesrelativetogenericspaces.”

Privatemarketsinvestor,U.S.corporatepension

Realestate

55%

Nichesectors

(coldstorage,

datacenters,life-

sciences,etc.)

49%

Demographictrends

50%

Sustainabilitytrends

40%

Industrial&logistics

26%

Office

Note:Respondentsselectedmultipleresponses.

FORPROFESSIONAL,INSTITUTIONAL,WHOLESALEANDQUALIFIEDINVESTORS/PROFESSIONAL,QUALIFIEDANDPERMITTEDCLIENTUSEONLY11

ALTM0423U/M-2841287-11/20

Barriersremaintoinvestinginprivatemarkets

Whileprivatemarketscontinuetoexpand,andinvestorsplantoallocatemore,therearefactorshinderingfurtherinvestments.

Thoughprivatemarketsspecialistssharedtheirviewspriortotherecentbankfailures,thesurveyrevealsthatliquidityistheirsinglebiggestbarriertoinvestinginprivateassets.

Ourrespondentsdiffer,however,injusthowbiganissueliquidityis.Morethanhalfofallpensionsnameilliquidityastheirmainobstacletoprivatemarkets,whileonly40%ofinsurersagree.

Itremainstobeseenhowrecentbankingturmoilandbroadershiftsinmarket-wideliquiditywillaffectprivatemarkets.Butthelimitedliquidityofprivateassetscanalsocreateinvestmentopportunities,intheformofsecondaries.

ThesecondarymarketlastyearsawUS$108billionofvolume,1justshyoftherecord-breakinglevelsseenin2021.AndasLPsandGPscontinuetoturntosecondariesforliquidity,therewilllikelybemoresupplythisyear–whichmaymeangreaterdiscountsforthoselookingtobuy.

Otherbarrierstoprivatemarketsincludegettinginternalstakeholderbuy-inandlimitedorganizationalexpertiseorcomfortlevelswiththeassetclass.

“Onewaythataninstitution’sattitudestowardprivatemarketscouldchangeis,forexample,attheboardlevelatpensions,whichcanbeverytop-downintheirdecision-making,”saidtheportfoliomanagerataSwisspensionfund.

“Overtime,adifferentgenerationwillcomeinwithadifferentfocus,andadifferentunderstandingofcertainprinciplesorcertaininvestments.”

Q.Whatarethemainbarriersyoufaceinallocatingassetstoprivatemarkets?

49%

41%

Internalstakeholderbuy-in

33%

Inappropriatelegalstructuresand/oroperationalset-up

32%

Expertiseof/comfortwiththeassetclass

29%

Riskprofileofprivateassets

27%

Abilitytodeploycapital

23%

Regulation

23%

Transparency/Dataquality

21%

Illiquidity/capitallockup

Valuationissues

Source:1.Jefferies–GlobalSecondaryMarketReview,January2023.

ALTM0423U/M-2841287-12/20

FORPROFESSIONAL,INSTITUTIONAL,WHOLESALEANDQUALIFIEDINVESTORS/PROFESSIONAL,QUALIFIEDANDPERMITTEDCLIENTUSEONLY12

Investorsprioritizedealsourcingwhen

choosingamanager

Investmentstrategy

Expertiseacrossassetclassesand/orregions

Environmental,socialorgovernanceapproach

Existingrelationshipwiththemanager

Reputationofmanager

Manager'strackrecord

42%

40%

37%

35%

31%

31%

27%

Specializedfocus

Makingthemostoftheprivatemarketsopportunitiesavailablemeanschoosingtherightmanager.Foroursurveyrespondents,therewasafairlyclearanswerabouthowtomakethatselection.

“Sourcingiswherethevaluegetscreated,”saidaprivatemarketsspecialistataCanadianfamilyoffice.

“Investmentopportunitiesinprivatemarketsaren'tuniformlydistributedlikeyouseeinpublicmarkets,wherethere'saverytransparentprocessandeverybodygetsafairshotatthedeal,”headded.

Astheindustry’sdrypowder–currentlyataboutUS$3.5trillion1–continuestogrow,managerswhocaneffectivelysourcethebestdealsastheydeploycapitalwillstandoutfromtherest.

“Goodaccesstoopportunitiesisalsowhatenablesmanagerstocraftdealssotheycannegotiatebetterterms,”saidthefamilyofficeexecutive.“That’swherealotoftheartgoesalongwiththescience.”

Havingtherightinvestmentstrategyisthenextmost-popularreason,withexpertiseacrossassetclassesand/orregionsnext.

“Differentiatedsourcingcandriveexcessreturnsoralpha,”saidtheheadofprivatemarketsataU.S.-basedinsurer.“Ialsothinkthatwhenselectingathird-partymanagertherealissueishavingalignment–alignmentofinterests,expertise,reputationandcharacter.”

Source:1.Preqin,June2022.

Q.Whenselectingaprivatemarketsmanager,whatareyourpriorities?

45%

Accesstoopportunities

Note:Respondentsselectedmultipleresponses.

FORPROFESSIONAL,INSTITUTIONAL,WHOLESALEANDQUALIFIEDINVESTORS/PROFESSIONAL,QUALIFIEDANDPERMITTEDCLIENTUSEONLY13

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ThemostimportantselectionpriorityforrespondentsintheEMEAregionistheapproachtoenvironmental,socialandgovernancematters.

“OnepotentialexplanationwhyEuropeaninvestorsfocusmoreonthesefactorscouldbeduetoamoredevelopedawarenessoftherisksandbenefitsofESGinvesting,”saidtheSwisspensionfundportfoliomanager.

“TheU.S.isanoutlierinthesensethattheawarenessisarguablytherebut,inpart,duetothepoliticallandscapethetopichasbecomepolarized.”

Whilehalfoursovereignwealthrespondentsidentifysourcing,amajorityalsosaytheinvestmentstrategiesofferedbymoneymanagersareakeycriterion.

ThatresponsecloselyalignswiththeapproachofaprivatemarketsinvestoratafinancialinstitutioninSaudiArabia.

“Ourpriorityisthefund’sstrategy,”hesaid.“Wechoosemanagerswherethefundisitscorestrategy.”

Theseresultsillustratehowimportantitisformanagerstomaintainthebestaccesstodealopportunities,saidBrentPatry,GlobalHeadoftheBlackRockCapitalMarketsGroupandDeputyHeadofBlackRockAlternatives.

“Whilesourcingisessentialforanymanager,havingtherightstrategy,provenexpertiseacrossalloftheprivatemarketsandstrengthinmultiplesourcingchannelsiscollectivelyameaningfuldifferentiator,”Patrysaid.“Andthemanagerswhocanbringthatexperienceandbreadthofknowledgeintogenuinepartnershipwiththeirinvestorsaretheonesmostlikelytosucceedinthisgrowingandincreasinglycompetitivespace.”

Q.Whenselectingaprivatemarketsmanager,what

areyourpriorities?

Byorganization

57%

44%42%

40%

38%38%

34%

43%43%

PublicpensionsCorporatepensionsInsurers

Accesstoopportunities

Expertiseacrossassetclassesand/orregions

Investmentstrategy

Note:Respondentsselectedmultipleresponses.

FORPROFESSIONAL,INSTITUTIONAL,WHOLESALEANDQUALIFIEDINVESTORS/PROFESSIONAL,QUALIFIEDANDPERMITTEDCLIENTUSEONLY14

ALTM0423U/M-2841287-14/20

FORPROFESSIONAL,INSTITUTIONAL,WHOLESALEANDQUALIFIEDINVESTORS/PROFESSIONAL,QUALIFIEDANDPERMITTEDCLIENTUSEONLY

RISKS

Capitalatrisk.Thevalueofinvestmentsandtheincomefromthemcanfallaswellasriseandarenotguaranteed.Investorsmaynotgetbacktheamountoriginallyinvested.Pastperformanceisnotareliableindicatorofcurrentorfutureresultsandshouldnotbethesolefactorofconsiderationwhenselectingaproductorstrategy.

Changesintheratesofexchangebetweencurrenciesmaycausethevalueofinvestmentstodiminishorincrease.Fluctuationmaybeparticularlymarkedinthecaseofahighervolatilityfundandthevalu