Adding return and lowering risk with private assets


Private assets have been popular with endowments and official institutions, such as sovereign wealth funds and government pension plans, for some time.

However, many  of these investors are looking to expand into new areas and other institutional investors are increasingly drawn to this space, attracted by the potentially for higher returns, lower risk and diversification benefits.

Our survey of 650 global institutional investors found that average allocations to private assets are expected to increase above 13% in 2018, with growth across all major investor types and regions.

As well as the strategic attractions of private assets, our paper on “Adding return and lowering risk with private assets” also addresses current market conditions.

Our in-depth research covers the main categories of private equity and debt, real estate equity and debt, and infrastructure equity and debt, contrasting their characteristics with traditional equity and bond investments.

As well as the return side we also deal with the thorny issue of risk and whether traditional concepts like volatility really have much meaning when it comes to private assets. Our hope is that this paper should serve as a useful companion for both novice and more experienced investors.

Read the full report: Adding return and lowering risk with private assets

Read the summary: Adding return and lowering risk with private assets

The opinions contained herein are those of the author and do not necessarily represent the house view. This document is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Cazenove Capital does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. This does not exclude or restrict any duty or liability that Cazenove Capital has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. Cazenove Capital is part of the Schroder Group and a trading name of Schroder & Co. Registered Office at 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. For your security, communications may be taped and monitored. 

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James Brennan

James Brennan

Portfolio Director james.brennan@cazenovecapital.com