High-net-worth investors (HNWIs) are allocating more to alternative assets such as private equity and private debt, as they diversify away from quoted markets in search of higher returns.
Connection Capital’s private client Alternatives Investment Survey has revealed a radical overhaul of the traditional 60 per cent equities / 40 per cent bonds mix as investors shake up their portfolios in the face of dwindling returns.
Private equity’s position as a long-standing top performer is a key motivator. According to McKinsey, private equity has been the highest-performing private market asset class over the past decade with a median net internal rate of return of 19.5 per cent.
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