February 23, 2021
James Sweetman, Senior Global Alternative Investment Strategist
Justin Lenarcic, CAIA, Alternative Investment Strategist
Well that was fast. Now what?
The most severe recession in history was also likely the shortest. But opportunities exist for alternative investments in 2021 as we simultaneously begin a new cycle and adjust to a post-pandemic world.
- The rising tide is not expected to lift all boats in 2021, and we still see opportunities for active management and security selection.
- Low rates coupled with monetary and fiscal policy truncated the default cycle, but for how long? While we are moderating our near-term return expectations for Distressed strategies, we envision a better opportunity set in the second half of 2021 and into 2022.
- Within private capital strategies, we continue to focus on small to mid-sized companies and strategies such as venture capital and growth equity, as well as special situations private debt and opportunistic real estate.