AUM growth has accelerated in recent years. |
Net flows – PE dominates, post COVID more balanced. |
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© 2022 Citigroup Inc. No redistribution without Citigroup’s written permission. |
© 2022 Citigroup Inc. No redistribution without Citigroup’s written permission. |
Source: Citi Research, Preqin |
Source: Citi Research, Broadridge |
Here’s a run-through of some of the different parts of the private assets continuum.
Private equity investment outpaces a basket of small cap and PE ETF proxies. |
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© 2022 Citigroup Inc. No redistribution without Citigroup’s written permission. |
Source: Citi Research, Bloomberg |
Real estate acquisitions recovering from the pandemic lows |
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© 2022 Citigroup Inc. No redistribution without Citigroup’s written permission. |
Source: Citi Research, RCA Analytics |
An investment in private infrastructure equity or debt can provide stable and competitive returns as part of a larger portfolio of private assets. Private infrastructure can also be used for long-term inflation protection, as the contracts are frequently indexed to price levels.
AUM for private infrastructure funds has steadily grown… |
. …and the industry continues to expand |
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© 2022 Citigroup Inc. No redistribution without Citigroup’s written permission. |
© 2022 Citigroup Inc. No redistribution without Citigroup’s written permission. |
Source: Citi Research, Preqin |
Source: Citi Research, Preqin |
Alternative Asset Returns vs S&P 500 since 2000 |
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© 2022 Citigroup Inc. No redistribution without Citigroup’s written permission. |
Source: Citi Research, Preqin, Bloomberg |
The full report goes into more detail on dispersion of returns and how some private assets can help in an inflationary environment. For more information on this subject, please see Global Asset Allocation Strategy - A Quantitative Primer for Private Assets, published on February 14th.
Citi Global Insights (CGI) is Citi’s premier non-independent thought leadership curation. It is not investment research; however, it may contain thematic content previously expressed in an Independent Research report. For the full CGI disclosure, click here.