Fidante’s Post

I often get asked by clients if private credit is safe, given the somewhat negative media coverage of late. I always answer "it depends what part of the market you allocate to." Get in touch if you want to know which part we like and which we don't. But overall, things don't seem to be much worse before. Great dataset below from Apollo Global Management, Inc.. Leverage isn't drastically higher than before as higher rates coincided with earnings growth. #privatecredit #assetallocation #wealthmanagement Leo Wealth

With the close of Q3 in 2024, we wanted to share our thoughts on the last 9 months of the year and some looking ahead. The words of famous American-British investor and banker, Sir John Templeton, sums it up: “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.” –Sir John Templeton Read our quarterly investment update and let us know what questions you have and how we can help. https://lnkd.in/eWN-wtFi

“The whole theory of portfolio allocation, where investors have invested in stocks and bonds, and this little bucket called alternatives, because it was risky and private, I believe is going to be rethought.” Apollo CEO Marc Rowan spoke to CNBC about how the continued evolution of financial markets has created the need for a fundamental rethink of portfolio allocation strategies for all types of investors, as we expect the convergence of public and private markets and new product development to accelerate. Watch to learn more about his views on the investment strategies of tomorrow:

As the ultimate pitchman, Marc Rowan is advocating for a bucket of alternative private credit investments to reflect the change in Apollo's business model from equity to credit over the years. #PrivateCredit #Investments #BusinessTransformation

Insight from Apollo CEO Marc Rowan, as he highlights the need to rethink traditional portfolio allocation strategies. He discusses the convergence of public and private markets and what it means for the future of investing. Check out the full interview here:

Well worth 6minutes of your time. Public credit is both safe and risky, private credit is both safe and risky. In short Credit risk is the same irrespective of the form it comes in. «public credit markets are just beta, no excess returns available. Private markets excess returns come from origination» We see the same structural trends in play in our position as an allocator. The liquidity differential is becoming narrower between private and public, yet risk premiums remain in private… Perhaps it should no longer be a question for investors of how much in investment grade or high yield, or for the advanced, how much in private credit. Rather the question for all should perhaps be, how much should I have in credit and which part of the credit universe should I allocate to based on relative pricing today ? 🧐 Formue Norge Formue Sverige Formue Danmark

Marc Rowan, CEO of Apollo Global Management, made some bold claims in a recent interview about the evolving landscape of private versus public markets. He argues that the distinction between the risks in public and private companies will soon diminish, driven by the rise of private credit and the shrinking role of traditional banks. With “de-banking” gaining momentum, private capital has taken on a significant portion of what used to sit on bank balance sheets, meaning that many of the traditional safety nets once associated with public markets are being replicated in private markets. For finance professionals in the SADC region, this raises important questions about both investment strategy and regulatory frameworks. Rowan suggests that, in the near future, private markets will offer investment-grade opportunities once believed to be exclusive to public companies. This challenges the conventional mindset that public markets are inherently safer or more liquid. The shift suggests that up-and-coming finance professionals must adapt to a world where both markets are equally viable for risk-adjusted returns. From an educational perspective, especially in the SADC region where there’s a focus on growing financial markets, Rowan’s points highlight a crucial need for curricula to emphasize alternative investments and private equity. As liquidity in public markets becomes more elusive and volatility more common, private markets may become an attractive route for long-term wealth creation, provided that upcoming professionals understand the complexities of private credit and the illiquidity premium. Key questions finance professionals should ponder include: - How will the regulatory environment in emerging markets like SADC respond to the shift toward private investments? - What opportunities and risks should investors consider when public and private company risks converge? - Are finance curriculums and training programs evolving fast enough to prepare the next generation for this seismic shift in investment strategy? These reflections are important for both investors and young finance professionals in the SADC region, where adapting to these global trends could open new growth avenues, but also present unprecedented challenges. What do you think—is the region ready for this shift, or are there more hurdles ahead? #Finance #InvestmentStrategy #PrivateEquity #PublicMarkets #SADC

While we largely agree with the need for a fundamental rethink of portfolio construction orthodoxy, the impact of the expected convergence of public and private markets will have serious impacts on the financial markets. Apollo's CEO rightly asks "long-term" investors why they need liquidity, however while investors always like to characterize themselves as long-term, they tend to ACT like short-term investors. Liquidity risk maybe the most underappreciated and undervalued risk premium in the markets.

Really articulate thoughts from Apollo Global Management, Inc. CEO Marc Rowan on the maturity of private markets: 1. The 3rd bucket idea is long gone 2. Neither public nor private is inherently more risky; sound management and product development are converging the two. 3. The illiquidity premium is going away, but that should have never been the point. 4. Portfolio construction in the DC, wealth mgmt, and retirement services areas are in dire need of a refresh.

After an eventful few months in the markets – and looking forwards to a potentially volatile final quarter – Greg Hirt, Global CIO Multi Asset at Allianz Global Investors, once again shares his views and convictions on the global economic and market landscape. #MultiAsset #Outlook