Private Markets, Diversification and Private Credit
Fidante’s latest video series featuring Anna Kirkby, Investment Specialist at Fidante, explores the growth and benefits of private markets and private credit, highlighting how these alternatives can offer enhanced returns and diversification beyond traditional public investments.
The Rise of Private Markets
Transcript: Imagine missing out on some of the fastest-growing investment opportunities in today’s market. Private markets have grown rapidly in recent years, and they’re not just for institutions anymore. Individual investors now have the chance to tap into this dynamic space to achieve greater diversification and improve portfolio resilience. An increasing number of companies globally are staying private for longer. As more and more growth is now achieved while a company is still in private hands this leaves public investors with fewer opportunities to participate in early-stage growth. For investors, private markets offer unparalleled access to some of the fastest-growing sectors and companies, long before they reach public exchanges. These opportunities include access to early stage growth, diversification beyond traditional equities and fixed income, lower volatility, and the potential for higher returns. Learn how private markets could help build a resilient portfolio today.
Private Markets, Powerful, Diversified
Transcript: Did you know the top 10 stocks account for over 34% of the S&P 500’s market capitalisation? The Australian market is even more concentrated, with 40% of the ASX 200 made up of just 10 companies. Public markets are dominated by just a few companies and sectors. With private markets, investors can access thousands of companies across industries that are currently underrepresented in public markets. Private markets offer something public markets can’t. Access to a much broader, diverse range of companies - from healthcare and technology to aerospace and defence, and more. And it’s not just equities. Australia’s relatively small public bond market doesn’t mean investors have to be limited when it comes to fixed income. Private credit can provide opportunities across diverse industries and credit ratings to better meet risk-return goals. When investing in private markets, there’s potential to unlock unmatched diversification, helping create a more resilient portfolio. Learn how private markets can help diversify a portfolio today.
Private Credit: Diversify Beyond Bonds
Transcript: What is Private Credit? Private credit is a broad asset class encompassing many types of debt that are not traded in traditional public markets. It can span corporate direct lending, asset-backed lending, real estate debt and more. An example of a private credit borrower can be amid-sized business seeking financing for growth, acquisitions, or refinancing. What’s driving the growth of private credit today? With traditional bank lending becoming tighter, more businesses are turning to private credit to meet their funding needs. Private lenders offer borrowers a flexible, tailored solution, often with increased speed and certainty of execution. For investors, private credit can offer a number of benefits, including attractive risk-adjusted returns, regular income, lower volatility compared to traditional fixed income and portfolio diversification. Adding private credit to a portfolio can help to stay ahead of market volatility and capture new sources of long-term value. Learn how private credit could benefit portfolios today.