Private Markets Navigator H2 2017
In search of platform-building opportunities
We continue to believe in a base case macroeconomic projection of sustained low but steady growth. However, after nearly a decade of rising markets and with a shift away from extremely loose monetary policy, there is the risk of a deviation from our base case. Identifying anchor assets with platform-building potential in above-average growth segments and testing their resilience to adverse economic scenarios is key to outperformance in this environment.
Private Markets Navigator H1 2017
Investing in stable assets and transformative growth
The global economy continues to expand at a modest, yet resilient pace. However, since our last relative value assessment, a number of unexpected geopolitical events have further increased uncertainty as well as volatility in capital markets. In this environment, we continue to center our investment strategy around predictability and stability on the one hand, and transformative trends on the other. We focus on value creation strategies as the principal means of generating sustainable returns and look for assets characterized by valuation resilience.
Research Paper January 2017
Adding private markets to DC pension plan portfolios
For decades, investments in private markets have been a performance driver for defined benefit (DB) pension plans. However, they have not yet been widely adopted as a component of an investment strategy for defined contribution (DC) pension plans.
Private Markets Navigator H2 2016
The tide is high and waters are rougher: seek stable assets and create value
While global economic growth remains modest but solid, we expect to see increased volatility in capital markets going forward. In this environment, we are focused on finding more robust assets that can hold their value throughout economic cycles on the one hand, and that offer the potential to create value on the other.
Private Markets Navigator H1 2016
In search of transformative growth
The general pace of economic growth remains low on aggregate and markets have become increasingly volatile. In this environment, we believe that the search for growth-focused investment opportunities must go beyond sectors or regions and into the specific trends that are transforming our industries and consumer habits.
Private real estate: Why invest in Asia-Pacific?
A convergence of four key growth drivers — a flourishing middle-class, swelling consumer demand, rapid urbanization and strengthening domestic business growth — has transformed the private real estate landscape in the Asia-Pacific region.
Private real estate: in search of the appropriate benchmark
Regardless of the asset class, the ability to generate superior investment performance is the measurement that separates good investors from great investors. In most asset classes, performance is easily compared and contrasted against a commonly agreed upon investment universe or an appropriate index of investment opportunities.
Private equity: emerging markets – control is the key to success
In the past decade, emerging markets have attracted a greater level of interest and capital from investors in search of higher returns regardless of the higher level of risk.
Private real estate: opportunity in Europe’s real estate debt markets
Financing real estate investments in European markets remains a challenging endeavor. The retrenchment of bank lending as a result of the financial crisis, stricter lending requirements and the subsequent enactment of regulatory reforms has made financing unavailable to all but the most secure borrowers.
Private infrastructure: emerging markets infrastructure: risk, returns and current opportunities
The current market environment is characterized by low yields, intense competition for assets and increased regulatory volatility in many countries previously considered to be stable. This poses a significant challenge for capital deployment in general and investments in infrastructure in particular.
Portfolio management: the tale of the mattress
Given the current low yield environment, pension funds will struggle to reach the target returns required to meet long-term payment obligations to pensioners. In addition, a typical pension fund’s current tendency to allocate the majority of their portfolios to low yielding investments could be characterized as “keeping their money under their mattress” rather than putting the capital to work.
Private real estate: why a global approach outperforms
While real estate investors have traditionally invested in domestic core properties, over the past few years we have observed a rapidly increasing trend in the market to gain exposure to real estate globally.
Private debt: analysis on loss rates in the European mezzanine market
In an environment characterized by uncertainty, weak GDP growth and record-low interest rates, investors are in search of yield. European mezzanine investments, as an asset class, offer investors attractive floating base rates that address their need for yield, while at the same time protecting them from an inflationary interest rate environment.
Private real estate: the real estate secondary market - enhanced returns with lower risk
Real estate secondary transactions represent the purchase of interests in property portfolios and/or single assets from existing investors. These transactions are often consummated at a discount to the net asset value (NAV) of these assets and therefore provide investors with some unique advantages.
Private real estate: a new tool for private real estate performance measurement
Over the past 20 years, Partners Group’s real estate team has invested over USD 30 billion in private real estate. Historically, Partners Group has collected and maintained proprietary industry-wide real estate data for in-house use and research projects.
Private equity secondaries: key component of value creation
Developing a comprehensive investment strategy in private equity secondaries is about much more than the simple notion of buying "good" assets at a discount to the stated net asset value or perceived intrinsic value.
Private debt: the debt hangover and its impact on debt markets
As traditional providers of debt financing are still struggling with the aftermath of the financial crisis, structural shifts in the composition of global debt markets are opening up appealing opportunities.
Private infrastructure: building an infrastructure portfolio
Partners Group’s latest research report discusses the key factors for successful portfolio construction for the infrastructure asset class.
Private equity: understanding private equity's outperformance in difficult times
Many studies confirm that private equity investments have consistently outperformed public equity markets. A common prejudice is that this superior performance is attributable to the higher risk that private equity investors take.
Private equity: Private equity under Solvency II - Evidence from time series models
From the beginning of 2013, the existing Solvency I regime for European insurance companies will be replaced with Solvency II, an updated framework for determining the regulatory capital requirements.
Private equity: Latin America - reaching out to untapped opportunities
With a population of more than 570m and an expected combined GDP of USD 5.3 trillion for 2011, Latin America is “nobody’s backyard”, as recently pointed out by the Economist.
Private equity secondaries: Value-based secondary investing across market cycles
The private equity secondary market underwent significant changes over the last decade and in particular over recent years as a result of the global financial and economic crisis.
Private real estate: Asia-Pacific real estate - local approach in a diverse market
The Asia-Pacific region contributes approximately a third to global gross domestic product (“GDP”) and is growing at more than double the pace of the United States (“US”) and Europe. However, it has yet to receive its proportional allocation of real estate investments from institutional investors.
Private equity: What is the optimal allocation to private equity
Determining overall asset allocation is one of the first and major challenges an investor faces, well before actual investment decisions are made.
Private debt: Mezzanine Investments - Stability Through the Storm
Mezzanine debt is often used in leveraged buyouts to enhance equity returns. In a company’s capital structure, mezzanine debt is subordinated to senior debt obligations, but ranks ahead of preferred and common equity.
Private equity: Feeling the pulse of private equity
Against the background of raising complexity and uncertainty, private markets investments, conducted by a leading global integrated investment manager, can provide significant long term benefits across economic cycles.
Private equity: Waiting for the tide to come in
The real estate markets in developed countries appear to be at an inflection point. One asks has the hemorrhaging finally stopped? Are we languishing in the doldrums? Or has the tide actually turned and will capital flow back into the sector? There is considerable speculation as to the directional movement of the real estate markets. What is the market telling us?
Private equity: Private equity allocations under Solvency II
Starting in 2012, European insurers will be required to comply with Solvency II, a new European Union regulatory framework with solvency capital rules applicable to insurance companies.