Summary
This document is a research paper that provides a comprehensive analysis of five primary private market alternatives: private credit, real estate, infrastructure, private equity, and hedge funds. It discusses the distinct characteristics of each asset class while acknowledging the growing overlaps among them. The paper emphasizes the relevance of these alternatives to high net worth investors, particularly in the context of portfolio diversification and capital preservation. It details the features of private credit, including its growth post-2008 financial crisis, the role of private lenders, and the benefits of floating rates in hedging against inflation. The document also covers the expected returns and risks associated with various private credit strategies, such as senior debt and distressed debt. Additionally, it outlines the potential of real estate investments as a source of income and inflation hedge, highlighting the importance of sector-specific adjustments to inflation. Overall, the paper serves as a valuable resource for understanding private market alternatives.
