As economic conditions evolve, alternative investments like private credit, hedge funds, and private equity are becoming essential components of modern portfolios. These strategies not only help mitigate risks but also provide diversification and opportunities beyond traditional markets, positioning investors to navigate inflation and market volatility effectively.
Private credit has seen significant growth as investors seek higher yields and exposure to private companies outside public markets. With fewer publicly listed companies today, private credit enables access to a broader spectrum of opportunities, especially among the 17,000 U.S. firms with revenues over $100 million. Carefully structured private credit deals allow investors to capture yield premiums and structural advantages.
Another exciting development is the rise of semi-liquid solutions—an innovative approach balancing periodic liquidity with the potential for higher returns. These strategies provide flexibility while ensuring investors capture the illiquidity premium where applicable.
For businesses, these evolving strategies mean more capital availability from alternative investment sources like private credit and private equity. At Qube, we embrace these developments by facilitating access to innovative financing solutions that support business growth, financial resilience, and long-term success.
Explore how Qube integrates alternative strategies into its financing solutions to help businesses thrive in a changing financial landscape.
This article draws on insights from UBS Asset Management’s piece, “Alternative Investments: Evolving Asset Allocation Strategies.” Read the full article here.