New Paths, New Destinations
Investors have reasons for optimism and obstacles to contend with as 2025 comes into view. While upside inflation risks have subsided, downside growth risks have edged up. Interest rate cuts are underway, though the pace and ultimate endpoint of easing cycles is unknown. As the economy changes course investors also face the prospect of political change and post-US election policy shifts. Heightened geopolitical risks and an increasingly fragmented global economy add to a wide range of risk and return outcomes, while disruptive technology and sustainability trends look set to catalyze or complicate the environment.
Our latest edition of Perspectives explores potential new paths and destinations for asset classes and portfolios. While an exit has traditionally been the final destination for investments in private markets, we examine innovations that have opened different paths to allow for indefinite hold periods. We also take a closer look at trade-offs around vehicle structures in the context of achieving an ongoing, steady private markets investment program.
Building on prior editions, we explore how market dynamics have evolved alongside structural drivers including digitization and decarbonization. Infrastructure—an asset class containing a wide range of strategies and differentiated sources of yield—is being redefined by trade flows, technology, and demographics. The maturation of climate transition sectors is another powerful theme, driving demand for bespoke financing solutions and debt capital.
As the world changes rapidly and uncertainty persists, new paths are opening, leading to new and sometimes uncertain destinations. While it's impossible to plan for every fork in the road, we hope our insights help you navigate what’s next, and we look forward to sharing our perspective with you on the journey.
All investing involves risk including potential loss of capital. Please refer to individual article links for additional disclosures.
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