Laura Mason’s Post

Explore private debt for enhanced return potential Five key takeaways 👇 Eric Hutchens, president and chief investment officer at Allodium Investment Consultants, spotlights private debt as a key retirement income idea for 2024. 1. This type of fund offers attractive yields with great diversification benefits 2. by holding their loans to maturity, are not as susceptible to the market volatility that affects publicly traded stocks and bonds 3. There is a wide spectrum of private debt funds, from less risky to more risky, and finding a high-quality private credit manager can add significant diversification and returns 4. Investing in this asset class typically involves giving up some liquidity 5. investors are compensated by an ‘illiquidity premium,’ which can add to their returns over time Damian Ainsley, Investment Director at PMJ Capital says: "It is possible to specialise even further within the private credit arena by opting to invest in real estate private credit. Loosely translated as lending specifically to real estate investors and developers, either via a fund structure or directly, with the debt secured against the property asset." Follow Damian Ainsley for more private credit news, views and clues. #privatemarkets #markets #investing #realestate #privatedebt https://lnkd.in/ehciT_ez

Many unit trust investors and retirement savers are invested in multi-asset funds that spread investment risk across shares, bonds, listed property and cash. Recently, the decisions managers of these funds can take have increased – they can take 45% of the fund offshore, put 45% in infrastructure and 15% in private equity. You should be aware that a wider range of decisions will result in a broader range of returns from funds. Our latest article explains why.  https://lnkd.in/dfGhK_hB #InvestmentForum2024 #SmartAboutMoney #financialeducation #investment #investmentrisk #unittrust #retirementplanning Victoria Reuvers (Sheppard), PSG Asset Management, Coronation Fund Managers, M&G Investments Southern Africa, Morningstar, The Collaborative Exchange, Prescient

Giant LPs are looking down market for managers, as their investment teams expand and they find firms more willing to work with them on structures, terms and co-investment opportunities. Texas Teachers pension has pivoted its #privateequity program to target smaller funds, after spending years chasing scale with the biggest GPs in the biz. A quick scan of CalPERS PE portfolio shows some interesting names showing up - smaller, some that in the past might have gone into the firm's emerging manager portfolio, now in the main fund. What gives? Read more here and let me know if you have some thoughts. https://lnkd.in/edt-8qn4

Thanks to Brian Croce for quoting me and my colleague Chris Hayes today in his Pensions & Investments article on the United States Court Of Appeals For The Fifth Circuit's recent decision that held the U.S. Securities and Exchange Commission's #privatefundadviserrule to be unlawful. My quotes from the article follow and the full article is available via the link below. "Jason Mulvihill, founder and president of policy advisory firm Capitol Asset Strategies and former chief operating officer and general counsel at the American Investment Council, said the rule was extreme, unnecessary and ultimately would’ve cost limited partners and general partners a lot of time and money." "'I’m glad that the court recognized the SEC lacked statutory authority to pursue this rule,' Mulvihill said." "While the option for an appeal is still on the table, Mulvihill doesn’t expect the SEC to challenge the June 5 decision." "'Both the full 5th Circuit and the Supreme Court would be as skeptical as the three-judge panel was of the tenuous authority that the SEC claimed it had to write this rule,' he said. 'If the SEC appeals and loses again it would simply raise the profile of the case and put another exclamation point on what the SEC already cannot do.'" #privatefundadvisers #privatefunds #privateequity #privatecredit #venturcapital #PE #VC If you have any questions about this topic, please reach out to our team at Capitol Asset Strategies.

To SMSF trustees: Tip Brookfield (TSX:BN) Soon to be retirees must have a sprighty personality to want to be part of a self-managed super fund (SMSF); where you have to have funds to spend funds. If you're lucky, you got to play the stock market in Year 11 at high school. You'll tend to remember in your 60s, your 17 yo times clearly. Brookfield (TSX:BN) is a good tip. On last record, it controls $825 billion in assets BN shares should help the SMSF trustee and their fund's balance. If you're a busy person before retirement and ending work is looming, going into SMSF is a learning experience and memorable because you'll still be busy. The superfund gig involves playing the ASX and international stock markets. Australia's superannuation system permits a low-tax retirement fund to be built. Over time, most investors seek a diversified portfolio. With maturity you would look at the involving exercise of dealing in diversification including cash, bonds, real estate and both Australian and international shares. The superfund's worth is often gauged by the merit of the underlying assets inside it. You're seeking a fair return to shareholders. Tip: Brookfield (TSX:BN) Brookfield Corporation is from Toronto, Canada, and in the first quarter 2024 (Q 1 2024) it acted in line with global good feelings towards climate change. BN announced it had notched a watershed renewables agreement with Microsoft. BN's act signals a digital society looms over the globe. More technology shaped economies will prevail so top companies are using Al to Windows 11. BN seeks a lengthy and sustainable tech-wealth act for a financially safe future. The company has therefore entered into more than 10.5 gigawatts of new renewable energy in magnitude; in their U.S. and Europe's renewable arenas to foster their interest in extending their data centres. BN from all appearances is striving to be the premier clean power company within the digital embracing global economy. In March 2023, BN signed off on an $18.7 billion agreement to purchase Australia's 2nd largest electricity and gas provider Origin Energy with US partner EIG. Their real estate market splits into two forks: In Q 1 2024, BN financed nearly $15 billion of debt to earn revenue from nearly $2 billion of assets and signed over 7 million square feet of office and tenant/landlord leases.  In hedging against inflation; BN can claim it is applying the stock market to tactically outstrip the average rising rate of inflation. BN is ushering in canny strategic decision-making whether it be in investments, debt reduction, cash building, profit distribution, or buying back shares, so that shareholders are set to receive a bigger return. Cash flow growth and compounding capital over the long term to foster additional returns is part of their game plan. BN's stock is not as expensive as Brookfield Asset Management's stock. What you may get to see: shares trading at a premium. BN Share Price is $40.100. Brookfield: Picture

📢 Attention all investors and money managers! 📢 I’ve got some juicy insider information for you. Sovereign wealth funds and state pension providers are making some serious demands before committing to new fund raises. 💰 According to my sources, these big players want their capital tied up in old funds to be released. But that’s not all! They’re also asking for fee discounts, more co-investment opportunities, greater information rights, and representation on committees. Some are even requesting a cut of the fund’s management fee or a chance to buy a stake in the fund manager. 😮 It seems like we’re witnessing a real cultural change in the industry. William Barrett, managing partner at Reach Capital, says, “It’s the first time we’re seeing LPs being so straightforward and linking a distribution from one fund to a new commitment in another. They’ve never been so precise with their asks.” 🤔 The balance of power is shifting in the private equity world. Buyout funds are struggling to return money to investors, and disagreements over corporate valuations are causing even more problems. This gives LPs more control over the terms of engagement. 💪 And guess who’s calling the shots? The sovereign wealth funds from the UAE, Saudi Arabia, and Qatar, among others. These funds have become even more influential as money flowing into private equity has slowed down. In fact, five years ago, they didn’t even make the top 10 state-owned investors of private markets. But now, they’re dominating the scene. 🌍 But it’s not just about getting their money back. Some of these funds are demanding more transparency about the underlying assets in portfolios. They want to know everything about their investments, and they’re not afraid to ask for it. Talk about being thorough! 👀< So, why are LPs flexing their muscles? Well, it’s a tough market out there, and they know it. Fund managers have to fight for every dollar, and LPs are using their leverage to get what they want. They’re making sure their investments are safe and sound. 💼 One common reason for LPs asking for cash back is the so-called denominator effect. When the value of other assets is volatile, private equity valuations tend to stay steady. This means that some investors have to liquidate their private holdings to meet allocation guidelines. But fund managers are hesitant to sell assets in uncertain markets, so they’re exploring other options like leveraging their portfolios. 📈 Speaking of leverage, net-asset-value (NAV) financing has become more popular. It’s a loan backed by a pool of portfolio companies, but critics warn that it could dilute returns in the long run. Some big players, like Vista Equity Partners, have used NAV loans to generate billions in value. But even with all that success, they still signed a $1.5 billion NAV loan last year. 😮 LPs are

Catching the wrong end of the stick .. 1. Is it from retirement funds? In which case, SEBI might have an argument. But how does the mutual fund know? Their role is to follow the mandate of the scheme. It is the investor and their advisors to decide if small cap funds should be considered as part of the mix. What if the funds are part of legacy planning - funds to be left behind for the next in line. 2. The regulator has taken a stand that the distributors are appointed by the mutual funds and the mutual funds need to govern them. That is how it works in a typical manufacturing set-up - that the manufacturers take onus of their distributors and ensure there is no mis-representation of the product. But the distributors in the investment industry, while technically on paper are appointed by the mutual funds, in reality are seen as advisors by the investors. 3. As things stand today, 99% of the advisors are distributors who earn by way of commissions from the mutual fund. Their commissions are reduced from your investment value - so even if they are not charging you anything, you are only paying. Naturally, with the exception of the few god-fearing distributors (but how to identify them*), it is human tendency to put those products in front of the investor where the commissions are higher. Equity funds pay 2-3 times commissions as compared to debt funds, and within equity funds, small cap funds might pay more than large cap funds. Some fund houses pay the same, whereas some pay higher for small cap funds. One of the fund houses pays nearly twice the commission on their small cap fund as compared to their large cap fund. Now that can be a discussion the regulator might want to have with the fund house. However, that according to me, will be regulatory over-reach. The moot point is that 99% of the advisors (who by design have a conflict of interest, as they earn commissions) are un-regulated whereas the 1% advisors (who by design are on the investor's side as they earn from the investor) are over-regulated. Until the regulator does not decide to bring the 99% under its ambit - it will continue to catch the wrong end of the stick.

"CalSTRS Leans Further Into Collaborative Model to Shrink Private Investment Costs"   Whilst the concept of Co-Investment and Minority Stakes is far from new, there appears to be a large amount of recent interest from LP's in employing this approach.   Equally, we have been approached by a number of excellent Private Markets platforms of late who increasingly see such an approach, including potential equity allocation in the Op Co as being beneficial to both long term growth and investor alignment.   Interested to discuss.. https://lnkd.in/esuRrhvn #privatemarkets #privatecredit #privateequity #realestate #infrastructure

Starting this year, excess 529 plan funds can be moved to a Roth IRA, if you meet certain conditions. We can help determine how your family can take advantage of this new opportunity. Reach out and see how Cypress Grove Capital Advisors can help.

Discover how the LA Fire & Police Pension is boosting its private equity game, committing $200M to venture capital in 2024, building on their $77.5M investment in 2023. #PrivateEquity #Investment #LAFireAndPolicePension