Make the most of private market investments
Both you and your clients can benefit from private market investments. While they offer an opportunity for enhanced returns, volatility mitigation and diversification,¹ and income potential,² it's about more than portfolios. They can help you differentiate and expand your practice too.
The opportunity in private markets
Private companies are an outsized driver of wealth creation — those with more than $100 million in revenues outnumbered public companies by more than 6 to 1.2 Institutional investors have long embraced private market investments. Individual investors can too but they need financial professionals to provide access to high-quality private equity, credit, and real estate offerings. With Invesco Total CX — we can be your partners in private markets. We offer what you need to incorporate private markets into your practice — all in one place.
Optimize your portfolios
Get allocation guidance, model portfolios capital market assumptions and more in our Alternatives Playbook.
Enhance your business
Private markets investments may be able to help attract and retain high-net-worth clients, increase AUM, and drive referrals.
Connect with your clients
Feel confident in conversations with client-friendly language to help you understand, and in turn, explain complex concepts.
Alternatives Playbook
Ready to invest in private markets and other alternatives? Start here with our asset class views and allocation suggestions, including how to fund new alternative positions from existing portfolio assets.
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Enhance your business
Learn how to grow your practice by attracting more assets and clients and optimize your team’s performance to take full advantage of the business-building potential in private markets.
How does your practice compare?
Get valuable insights and customized resources in the areas you need support with our Practice Innovation Index.
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Playbook for practice success
Cerulli Associates research confirms that offering private market investments can help attract high-net-worth clients.
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Build strategic partnerships
Learn how to partner with attorneys and accountants for high-net-worth referrals with our Referral Code program.
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Connect with your clients
Many clients need to be educated about the ever-evolving private markets universe. Tailored education, insights, and resources can help you have confident client interactions about private markets.
Building opportunities
Investors are ready to talk to their financial professional about REITs, but it’s essential it’s communicated the right way.
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Trending conversations
The office property market is challenged, download “US commercial real estate: A multi-sided story” to learn more.
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Latest alternatives insights
Fresh perspectives on private markets and liquid alternative investments.
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Footnotes
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1
Enhanced returns, volatility mitigation and diversification: Source: Invesco Real Estate. Trailing 5-years of data, last 5 years of quarterly returns annualized 2019Q1-2023Q4, latest data available.
Total returns and standard deviation (annualized) by asset class: Direct Lending – 9.09% and 3.70; Private Real Estate Debt – 6.88% and 0.77; Senior Loans – 5.83% and 8.58; High Yield – 5.35% and 10.94; Private Real Estate Equity – 4.34% and 5.42; Corporate Bonds – 2.63% and 9.52; CMBS – 1.60% and 5.35; Investment Grade Bonds – 1.10% and 6.57; Treasuries – 0.53% and 6.89; U.S. Equity 15.68% and 19.72, respectively. Past performance is not indicative of future results. There is no guarantee that any trends shown herein will continue. Standard deviation measures a portfolio’s or index’s range of total returns in comparison to the mean.
Diversification – Private Real Estate Debt Direct correlation to other asset classes: Private Real Estate Debt – 1.00, Direct Lending – 0.32; Senior Loans – 0.19; High Yield – 0.17; Private Real Estate Equity – 0.29; Corporate Bonds – 0.08; CMBS – (0.09); Investment Grade Bonds – (0.11); Treasuries – (0.27); U.S. Equity – 0.21. Diversification does not guarantee a profit or eliminate the risk of loss. There is no guarantee that any trends shown herein will continue. Correlation is the degree to which two investments have historically moved in relation to each other.
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2
Income Potential: Source: Invesco Real Estate. Trailing 5-years of data, last 5 years of quarterly returns annualized 2019Q1-2023Q4, latest data available. 5-Year Average Distribution Yields: Direct Lending – 9.99%; Private Real Estate Debt – 8.43%; Senior Loans – 6.74%; High Yield – 6.50%, Private Real Estate Equity – 4.23%; Corporate Bonds – 3.54%; Commercial Mortgage Bonds (CMBS) – 3.24%; Investment Grade Bonds – 2.81%; Treasuries – 2.23%. Past performance is not indicative of future results. An investment cannot be made into an index. There is no guarantee that any trends shown herein will continue.
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3
Source: Cerulli Research: Advisors were asked. "Across your client portfolios, please estimate their typical alternatives asset allocation. How do you expect this to change in the next two years, and what would be the optimal asset allocation? (Optimal Asset Allocation: If there were no investment restrictions and clients had a strong knowledge of alternatives. Please estimate the optimal allocation for your core client segment.)" Other buckets provided were equities and fixed income. Survey conducted in Q2 2023.
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There may be material differences in the investment goals, liquidity needs, and investment horizons of individual and institutional investors. Investors should consult with a financial professional regarding their own situation and risk tolerance before making any investment decisions.
Working with your Invesco team
For more on how we can partner with you, submit a request for a call back or contact us directly today.
