Intro to Alternatives
Gain a better understanding of private market investing with an overview of key concepts. Go deeper with our Blackstone University online video series.
What are alternatives?
Learn how investing beyond public markets can build a less correlated, more diversified portfolio.
Private Markets Can be a Complement
Across asset classes and investor needs, private markets can provide differentiated returns and serve an important role in portfolios.
Individuals Remain Under Allocated
Compared to institutional investors, most individuals are under exposed to private markets.
Source: Willis Towers Watson, “Global Pension Assets Study,” 2021; National Association of College and University Business Officers, “TIAA Study of Endowments,” 2021; Cerrulli, “U.S. Intermediary Distribution 2020,” 2020. For Endowments, the alternative asset allocation is for the Public College, University or System only and represented by allocations to Other equities (includes marketable alternatives, private equity and venture capital) and Real assets (includes TIPS, REITs, commodities / futures, publicly traded Master Limited Partnerships (MLPs), public traded natural resource equities, private energy and mining, and private agriculture and timber). Averages provided are dollar-weighted. For Individuals, the alternative asset allocation includes “Alternatives” (e.g., long/short, market neutral, currency) and “Other” as defined as UITs, listed and unlisted closed-ended funds and private funds. Responses are weighted based on the average asset allocation of a moderate client.
Public Markets are a Shrinking Universe
The number of public companies has continued to shrink, making it harder to access the full investible universe.
Source: World Bank, the World Federation of Exchanges Database. CAGR stands for Compound Annual Growth Rate. Data as of December 2019. Reflects most current available data as of October 2022.
In this video series, Blackstone’s top investment leaders share the fundamentals of their private market asset classes.
Driving fundamental improvements in businesses over the long term
Real estate has historically offered current income to investors and may appreciate in value over time
An attractive alternative investment for investors looking for yield
Once a niche, secondary private equity has grown into an evolved asset class