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
