Market
Memos from Howard Marks: Is it a Bubble?
Alternative Investments
Mastering the Opportunity
The Case for Alternatives
We believe including alternatives as part of a well-diversified portfolio can help improve investor outcomes. Explore the potential benefits.
Attractive Risk-Adjusted Returns
Exposure to Alternatives Has Historically Improved Returns, Lowered Risk
Risk and return analysis
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Past performance is not indicative of future results. For illustrative purposes only. Information does not represent returns of a fund. An investor cannot invest in an index. Global Equities represented by the MSCI World Index, Global Bonds by the Bloomberg Global Aggregate Bond Index, Private Equity by the Preqin Private Equity Index, Private Credit by the Cliffwater Direct Lending Index, Private Infrastructure by the Preqin Private Infrastructure Index, Private Real Estate by the Preqin Private Real Estate Index, Commodities by the Bloomberg Commodity Index, Risk-Free Rate by the ICE BofA US 3-Month Treasury Bill, Listed Real Estate by the FTSE EPRA Nareit Developed Index and Listed Infrastructure by the FTSE Global Core Infrastructure 50/50 Index after December 31, 2014; data from July 30, 2008, through December 31, 2014, represented by the Dow Jones Global Infrastructure Index. Prior to July 30, 2008, data represented by an equal blend of the Datastream World Gas, Water & Multi-Utilities Index and Datastream World Pipelines Index. Please see disclosures for additional information. Source: Bloomberg, FTSE Russell, ICE Data Indices, LSEG Data & Analytics, Morningstar, MSCI, Preqin, S&P Dow Jones Indices, as of June 30, 2025.
Hedge Against Inflation
Alternatives Have Historically Outperformed Traditional Asset Classes Amid Inflation
Average quarterly returns when inflation is above average
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Past performance is not indicative of future results. For illustrative purposes only. Information does not represent returns of a fund. An investor cannot invest in an index. Global Equities represented by the MSCI World Index, Global Bonds by the Bloomberg Global Aggregate Index, Private Infrastructure by the Preqin Infrastructure Index, Private Real Estate by the Preqin Real Estate Index, Private Equity by the Preqin Private Equity Index and Private Credit by the Cliffwater Direct Lending Index. Inflation is defined as seasonally adjusted CPI-U. Periods of above-average inflation are defined as quarters when CPI was above its historical average. During the time period analyzed, there were 27 quarters when average CPI was 2.51%. Please see disclosures for additional information. Source: Bloomberg, Cliffwater, MSCI, Preqin. for the period January 1, 2008–June 30, 2025.
Diversification
Private Investments Exhibit Relatively Low Correlations to Stocks and Bonds
Correlation analysis
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Past performance is not indicative of future results. Diversification does not guarantee a profit or protect against loss. For illustrative purposes only. Information does not represent returns of a fund. An investor cannot invest in an index. Global Equities represented by MSCI World Index, Global Bonds by Bloomberg Global Aggregate Bond Index, Listed Real Estate by FTSE EPRA Nareit Developed Index, Listed Infrastructure by the FTSE Global Core Infrastructure 50/50 Index after December 31, 2014, and from July 30, 2008, through December 31, 2014, by the Dow Jones Global Infrastructure Index, Private Equity by the Preqin Private Equity Index, Private Credit by the Cliffwater Direct Lending Index, Private Infrastructure by the Preqin Infrastructure Index and Private Real Estate by the Preqin Real Estate Index. Please see disclosures for additional information. Source: Bloomberg, Cliffwater, FTSE Russell, MSCI, Preqin, S&P Dow Jones Indices. For the period January 1, 2008, through June 30, 2025.
A Comprehensive Guide
We believe the most effective path to investment success has long been diversification—a blend of investments that offers protection during market downturns while seizing growth opportunities. However, diversification has encountered significant hurdles as correlations among traditional investments have shifted in recent years.
Alternatives offer a potential solution to this diversification dilemma.
Alternatives offer a potential solution to this diversification dilemma.
A Comprehensive Guide
We believe the most effective path to investment success has long been diversification—a blend of investments that offers protection during market downturns while seizing growth opportunities. However, diversification has encountered significant hurdles as correlations among traditional investments have shifted in recent years.
Alternatives offer a potential solution to this diversification dilemma.
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Examining the Possibilities
"Alternative investments" (also informally referred to as "alts") encompass a wide array of asset classes, strategies and vehicles, each with a role in an overall portfolio.
At The Alts Institute, we’ve curated the essential content to give you to-the-point summaries of the concepts and benefits underpinning the potential of alts.
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Private Credit
Private credit generally refers to loans made directly between a borrower and a non-bank lender. Stricter regulations have caused banks to tighten lending standards, prompting many companies to migrate away from traditional sources of capital and turn to private lenders for faster, more flexible, tailored solutions.
Private credit offers several advantages, including the potential for attractive income, risk-adjusted returns with greater risk mitigation, and less mark-to-market volatility.
Private credit offers several advantages, including the potential for attractive income, risk-adjusted returns with greater risk mitigation, and less mark-to-market volatility.
Private Credit
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Private Equity
Private equity (PE) provides investors with access to a broad universe of private companies, many of which are not available through public markets. PE managers adopt a distinctly active approach focused on creating value through direct involvement in strategic decision-making and operational improvements.
Private equity funds offer individual investors the opportunity to benefit from the growth of private companies.
Private equity funds offer individual investors the opportunity to benefit from the growth of private companies.
Infrastructure
Infrastructure provides the essential services underpinning the global economy, moving people, goods, commodities and data to where they are needed most. Infrastructure spans numerous sectors, including transportation, renewable power, utilities, midstream and data; with assets such as airports, wind farms and data centers.
Adding infrastructure to a portfolio has historically enhanced returns while mitigating risk and providing a source of diversification.
Adding infrastructure to a portfolio has historically enhanced returns while mitigating risk and providing a source of diversification.
Real Estate
Real estate investing extends beyond traditional direct property investments and encompasses various sectors including residential, commercial, and industrial properties.
Real estate is an alternative opportunity to access passive income, diversify portfolios, and utilize tax mitigation strategies that may potentially increase overall returns.
Real estate is an alternative opportunity to access passive income, diversify portfolios, and utilize tax mitigation strategies that may potentially increase overall returns.
Diversification does not guarantee a profit or protect against loss.
Please consult a tax professional for tax advice.