Against the backdrop of market volatility, global conflicts and geopolitical tensions, RankiaPro Europe analyzes in its December issue which asset classes and strategies are best positioned to protect capital and capture long-term opportunities.
Our Managing Director David Schäfer contributes a guest article outlining the positive impact of the asset class private equity on institutional portfolios – and why the lower mid-market in particular stands out for its attractive risk-return profile.
Therein, he focuses on three key factors:
- Long-term resilience: Over longer horizons, private equity has demonstrated the ability to outperform traditional public markets while showing lower volatility.
- FoFs as efficient way to navigate performance dispersion: Returns between bottom- and top-quartile managers vary widely. Fund-of-funds can help investors access high-quality managers through a single commitment – improving the chances of capturing the asset class’s upside.
- The lower mid-market offers structural advantages: The lower end of the market is characterized by a broad universe of SMEs with a very strong core offering and more room for value creation beyond just financial engineering. Gaps in systems, processes and team capacity create ample scope for operational and strategic enhancement by experienced private equity teams.
Read Guest Article
