Alternative opportunities Q4 2024
Alternative Opportunities is a quarterly report from Invesco Solutions. In each new edition, we look at the outlook for private market assets.
Our entrepreneurial teams manage $180 billion in global alternative assets.1
Our investment professionals average 17 years of industry experience.1
Our key market locations provide local knowledge and global perspective.1
Invesco provides investors exposure to private capital, private credit, real estate, costumised solutions and commodities by leveraging our institutional investment expertise, deep resources, and global investment platform.
Innovative investment strategies that leverage Invesco’s global resources to uncover diversified sources of return across real estate and private credit.
Learn more about gold performance and macroeconomic factors.
Alternative opportunities Q4 2024
Alternative Opportunities is a quarterly report from Invesco Solutions. In each new edition, we look at the outlook for private market assets.
Why complement direct lending with real estate debt?
Private credit, including real estate debt and direct lending, may offer diversification and lower volatility, making it potentially an attractive option for investors seeking optimized portfolios.
Global and US commercial real estate outlook — looking beyond 2024
A global and US real estate recovery with transaction activity re-accelerating and the start of a new real estate value cycle is close in our view.
Yields remain attractive and may maintain positive relative value
Significant focus on the uncertainty of the US macroeconomic backdrop and its potential implications on the market remain top of mind for investment opportunities. Against this cautious outlook, we asked the experts from Invesco’s bank loan, direct lending and distressed credit teams to share their views as the third quarter of 2024 wraps up.
Real estate 2024 investment outlook
Investing through market corrections has historically driven outperformance for real estate investors. We believe this will continue into 2024.
Let us know using this form and one of our specialist team will quickly get back to you.
A broad range of investments fall into the ‘alternatives’ asset class, including real estate, private credit, private equity, infrastructure and hedge funds. The asset class is growing, as investors continue to turn to alternatives for diversification and to navigate challenging market conditions.
Alternative assets often behave differently to public market assets like equities and bonds. Their unique characteristics mean that they can help investors achieve a diversified portfolio. Typically, they also generate higher returns than public market assets.
We manage over $180 billion¹ in alternative strategies, spanning private credit, real estate, private equity and beyond. We share some highlights below:
Traditionally, alternative assets (like real estate and some types of private credit) have been slower to buy or sell than public market assets (like equities and bonds). Often, this is because they are not traded on a screen with daily liquidity. Likewise, the market may be smaller with fewer eligible buyers and sellers, or the transaction may have to be privately arranged.
Liquid alternatives, on the other hand, can be bought or sold more frequently. Some fund structures (like ETFs) can help achieve greater liquidity. For example, Invesco offers a broad range of commodity ETFs with daily access.
1 Source: as of 31 December 2023.
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
Alternative investment products may involve a higher degree of risk, may engage in leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, may not be required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual portfolios, often charge higher fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. There is often no secondary market for private equity interests, and none is expected to develop. There may be restrictions on transferring interests in such investments.
Data is provided as at 31 December 2023, sourced from Invesco, unless otherwise stated.
This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. Views and opinions are based on current market conditions and are subject to change.
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