Private assets investing in 2024 is increasingly driven by

Private assets investing in 2024 is increasingly driven by diversification strategies as public equity valuations remain extended. Hedge fund data from May indicates a rotation into venture capital-backed tech plays, with projected IRR exceeding 18% over a 5-year horizon. Market watchers are noting that this trend could mitigate drawdowns commonly seen in cyclical stock sectors. Impact investing is also gaining ground among institutional investors in Europe. ABP, Europe’s biggest pension fund, says it’s planning at least €30 billion of impact investments by the end of the decade. PGGM, which handles investments for pension fund PFZW, has reportedly overhauled its strategy to focus more on impact. Even infrastructure may prove less attractive than it once did, with investors complaining of a shortage of suitable, shovel-ready projects to back and governments in regulated sectors negotiating harder on pricing. Higher interest rates will also crimp its ability to spice up returns with debt.. Private assets investing in healthcare facilities is climbing as global demographics favor aged-care growth. Unlisted deals are producing net margins 2-3% higher than healthcare REIT stocks, with less exposure to regulatory announcement risks. Yearly projections suggest sustainable defensive returns.