Newsletter

… Education (Cont’d)

Because: 

• Public markets do not comprise the entirety of the investment opportunity set 
• Private markets “roll” at a different pace, while providing meaningful additional diversification, as well as risk reduction potential (vs more volatile mark-to-market public markets) 
• Significant earlier challenges such as “Access”; Liquidity; and Diversification are increasingly being improved upon, via specialists in the category allowing access to well established relationships, proper due diligence and portfolio construction, and and importantly for investors, improving liquidity. 

Terminology – Privates have a vocabulary all their own. 

IRR (Internal Rate of Return) for instance, is a key metric in the space, with terms acronyms such as DPI also frequently used. What does DPI stand for? Distributions to “Paid-In” (Capital). 

Strong REITs performance (as at Sept 30, 2024) – against a backdrop of declining rates …