Alternative assets outperform major indices

Alternative assets have had a greater internal rate of return (IRR) over one, three, five and ten years than major indices including the S&P 500, MSCI Europe and MSCI Emerging Markets. Information provider Preqin groups these classes under ‘private capital’ and includes private equity, private debt, real estate, infrastructure and natural resources. The Preqin Index, which is a measure of returns on capital invested, show that private capital funds reached 322 index points by the end of 2015, from a starting point of 100 at the end of 2000. This is far ahead of the S&P 500 at 208 points, which according to Preqin illustrates the greater returns potential of private equity portfolios. Distressed private equity, including distressed debt, turnaround and mezzanine funds was the best performing strategy, reaching 494 points. According to the firm, private equity firms hold the majority of assets, at $2.7 trillion (€2.4 trillion), followed by private real estate at $809 million, natural resources at $404 billion and infrastructure with $331 billion. ©2016 funds europe

Executive Interviews

INTERVIEW: ‘It is what it is’

Dec 22, 2016

Jeff Conway, regional chief executive for State Street, talks to David Stevenson about regulation and how the firm will handle the challenge of tech disruption.

MASHREQ CAPITAL INTERVIEW: A new direction

Dec 22, 2016

The new chief executive of Mashreq Capital talks to George Mitton about fund launches, management style and why he is the right person for the job.

Roundtables

SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.

EMERGING MARKETS ROUNDTABLE: The re-emergence

Jan 03, 2017

2016 was the year emerging markets returned to the spotlight, as they regained ground since the 2012 sell-off. Funds Europe asked our panel if this appetite will persist in 2017.