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 teams manage $113 billion USD in global private markets assets.
Our investment professionals average 17 years of industry experience.
Our key market locations provide local knowledge and global perspective.
Invesco provides institutional investors access to differentiated strategies across real estate and private credit by leveraging our investment expertise, deep resources, and global investment platform.
Our reputation as an exceptional partner is built on four decades of doing things the right way and delivering enhanced deal flow and a premier experience for our clients. Learn more about our real estate capabilities.
As one of the world’s largest and longest-tenured private credit managers, we leverage a consistent, conservative fundamental credit process. Learn more about our private credit capabilities.
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.
How global demographics drive global real estate opportunities
Global demographic shifts, like a declining, growing, or an aging population, in tandem with macroeconomic factors tend to generate real estate investment opportunities.
Private markets consist of debt and equity investments that are not publicly traded. Private market investments can be made directly, but are most often made by funds as part of a larger portfolio. There are six main asset classes within private markets: private real estate, private credit, private equity, private infrastructure, natural resources, and venture capital.
Private market investments provide a range of exposures depending on the risk/return spectrum, cash flow, and correlation characteristics investors are seeking. The benefits private markets may help a portfolio by reducing portfolio risk, increase returns, generate income, and potential opportunistic growth.
We manage over $180 billion in alternative asset strategies, spanning private credit, real estate, private equity and beyond. We share some highlights below:
Real estate: Invesco Real Estate is a global real estate manager, with local people on the ground in 21 offices worldwide. We invest across the risk-return spectrum, from core to higher returning strategies. Our expertise covers public, private, equity and debt capabilities.
Private credit: Invesco Private Credit is one of the world’s largest and longest-tenured private credit managers. We pursue opportunities across broadly syndicated loans, direct lending, distressed debt and special situations.
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. Most private market investments take time to mature in market to reach potential returns.
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.
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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