A truly robust portfolio is built to perform across all phases of an economic cycle. Different alternative investments shine at different times, and understanding this can give you a strategic edge.
Performance Across Cycles:
- During Growth & Expansion: Venture Capital and Private Equity tend to perform exceptionally well as innovation thrives and companies grow rapidly.
- During a Slowdown or Recession: Private Credit often proves resilient, providing stable income as traditional lending tightens. Infrastructure also remains steady due to its essential nature.
- During High Inflation: Real assets like real estate and infrastructure can be excellent hedges against inflation, as property values and service costs tend to rise with prices.
A well-constructed AIF portfolio includes a mix of these strategies, ensuring it is prepared for any economic weather.
