...Let's Talk 2024 Alts Report with Matt Harvey, Sebastiano Ferrante, and Stephan Wessel

...Let's Talk 2024 Alts Report with Matt Harvey, Sebastiano Ferrante, and Stephan Wessel

Author: PGIM December 17, 2024 Duration: 34:25

Today's panel consists of Matt Harvey, Head of Direct Lending at PGIM Private Capital, Sebastiano Ferrante, Head of Europe at PGIM Real Estate, and Stephan Wessel, Managing Partner at Montana Capital Partners, a private equity secondary mid-market specialist affiliate of PGIM.

Keshav and the panel examine the findings of the 2024 Alts Report to understand how institutional investors are positioning their portfolios for a risk-on environment. The discussion covers topics such as target allocations to alternatives, geographic diversification, strategy selection, and the factors influencing investment decisions.

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Key Takeaways:

● Private Alts: Allocations and Tensions in a Risk-on Environment. [2:20]

● Manage Investment Risk Factors with Covenants and Protections. [8:16]

● Unique Variations: Positive Leverage in European Real Estate. [12:14]

● Challenges in Private Alternatives: Fundraising and Valuations. [14:53]

● Panel Unpacks Today's Investment Headlines. [19:00]

● Expected Institutional Investment Headwinds and Tailwinds of 2025. [27:56]

 

*The views expressed herein are those of the speaker at the time the comments were made and may not be reflective of their current opinions and are subject to change without notice, and should not be considered investment advice.

Find Out More About Alternative Investing:

To Request a Copy of the 2024 Report: PGIM.com/whats-your-alternative

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Shareables:

"Capital generally has to be returned to portfolios before it can be re-deployed." — Matt Harvey, Head of Direct Lending at PGIM Private Capital #PGIMalts #institutionalinvesting

"In the real estate market now, we see a stabilization in variations since this quarter and therefore we start seeing liquidity come back into the core space." — Sebastiano Ferrante, Head of Europe at PGIM Real Estate #PGIMPodcasts #alternativeinvesting

"With digitalization, the AI portion will change real estate structurally and substantially. Don't only look at the cyclical element and cyclical opportunities, look at the structured changes that will happen to the real estate industry with the change in our societies and economies." — Sebastiano Ferrante, Head of Europe at PGIM Real Estate #PGIMalts #alternativeinvesting

"If allocators expect the cost of capital to increase, irrespective of the underlying asset class, this would obviously impact valuations. This expected shift in asset prices will then trigger portfolio balancing." — Stephan Wessel Managing Partner at Montana Capital Partners #PGIMalts #investing

"We will see a continuation of current trends with significant levels of uncommitted capital persisting into 2025 and beyond." — Stephan Wessel Managing Partner at Montana Capital Partners #PGIMalts #alternativeinvesting

 


PGIM's Speaking of Alternatives offers a clear-eyed conversation about a part of the financial world that often feels shrouded in complexity. This isn't about dry lectures or sales pitches; instead, each episode sits down with seasoned practitioners and thinkers who operate in the trenches of private equity, real assets, hedge funds, and other non-traditional avenues. The dialogue focuses on the practical realities and long-term shifts within these markets, moving far beyond the fleeting news cycle. You'll hear how allocators are actually navigating current economic crosswinds, which structural trends are creating genuine opportunity, and how the very definition of "alternative" continues to evolve. The perspective is intentionally global, acknowledging that compelling strategies and risks can emerge anywhere. By demystifying the jargon and focusing on tangible insights, this podcast serves as a valuable resource for anyone looking to understand the forces shaping portfolio construction today. It’s a monthly dose of nuanced analysis for investors, advisors, and the intellectually curious who recognize that the conventional playbook is rarely sufficient. Tune in for straightforward discussions that respect the sophistication of the topic without losing the listener in unnecessary abstraction.
Author: Language: English Episodes: 26

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