August 2023

WELCOME TO OUR MONTHLY NEWSLETTER.

This newsletter is designed to serve as your primary source for navigating the world of alternative investments.

This month, we published our 2023 iCapital Financial Advisor Survey: Alternative Investments — Closer to Core .

The findings revealed the use of alternative investments is on the rise, with 95% of all survey respondents indicating they plan to maintain or increase allocations to alternative investments in the coming year.

Alternative investments are increasingly becoming a core component in individual investor portfolios. Financial advisors are leveraging alternative investments to diversify portfolios, driven by client demand and the expectation of outperformance from private markets.

The iCapital survey explores dynamics of this shift, the importance of financial literacy and education, and the industry’s potential challenges and opportunities.

We hope you find the survey results insightful and informative. Thank you for your continued partnership.

Chart of the Month

U.S. venture returns continue to be driven by a relatively small percent of high performers. Only 3% of capital invested into venture-funded companies generated a 10X or greater multiple, while nearly half of financings lost money. With the massive interquartile spread between top- and bottom-quartile venture fund managers, due diligence is critical.

Spotlight: Beyond 60/40: Episode 5

Anastasia Amoroso , iCapital Chief Investment Strategist, discusses private equity throughout market cycles with Alex Wright , Partner and Global Wealth Strategist at Apollo Global Management, Inc. ; and iCapital Managing Director and Head of Investment Solutions Steve Houston highlights why we believe the alternative investment asset class is on the cusp of significant growth.

Monthly Market Roundup

It’s Time for Credit Hedge Funds to Shine

As higher interest rates begin separating leveraged companies into winners and losers, some strategies are poised to profit.

Private Credit’s Rise Continues—But Not Because of SVB

Recent regional bank failures haven’t boosted the private credit market as much as some had hoped, but experts say other factors can fuel continued growth.

Private Equity Investments in Tech Services: Three Considerations

While they can generate significant returns, tech services companies have a different business model than software and software-as-a-service assets.

Unwinding the Market’s Clock: Opportunities in Commitment Timing

Read how steady commitment pacing paired with diversification across vintage years may help reduce risk.

In Case You Missed It

For investors, direct lending continues to offer enhanced income potential, diversification benefits, and exposure to private companies not accessible in the public credit markets. Read more.

Learn how non-traded BDCs can offer investors the potential for higher yields, lower volatility, and diversification when compared to public fixed income. Read more.

We break down how structured investments can be shaped to meet specific investor needs, offering solutions across the risk-return spectrum. Read more.

Gain More Insight

Monthly Alts Pulse: Episode 3

Tune in for this latest episode of Monthly Alts Pulse with iCapital Chairman and CEO?Lawrence Calcano ?and?Michael Sidgmore , Co-Founder and Partner at Broadhaven Ventures by Broadhaven Capital Partners , as they discuss recent events and the trajectory of the alternative investments market.

Weekly Market Pulse

With everyone seemingly in agreement on the massive potential of AI and the outperformance of AI stocks this year, we answer the key question – is the full potential of AI fully priced in? Find out in Chief Investment Strategist Anastasia Amoroso 's Market Pulse .

Subscribe to Market Pulse

New at iCapital

Meet your portfolio design studio. iCapital Architect enables advisors to proactively identify opportunities, staying ahead of the game in an ever-evolving financial landscape.

Learn More

Important Information / Disclaimer

The material herein has been provided to you for informational purposes only by Institutional Capital Network, Inc. (“iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.

This material is provided for informational purposes only and is not intended as and may not be relied on in any manner as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation. This material does not intend to address the financial objectives, situation or specific needs of any individual investor. Alternative investments are complex, speculative investment vehicles and are not suitable for all investors.

This material may contain forward looking statements. Forward looking statements include, but are not limited to assumptions, estimates, projections, opinions, models and hypothetical performance analysis. Forward looking statements involve significant elements of subjective judgments and analyses and changes thereto and/or consideration of different or additional factors could have a material impact on the results indicated. Due to various risks and uncertainties, actual results may vary materially from the results contained herein. The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward looking statements or to any other financial information contained herein.

The manner of circulation and distribution of this document may be restricted by law or regulation in certain countries, including the U.S.? This document is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, including the U.S., where such distribution, publication, availability or use would be contrary to law or regulation or which would subject iCapital to any registration or licensing requirement within such jurisdiction not currently met within such? jurisdiction. Persons into whose possession this document may come are required to inform themselves of, and to observe, such restrictions. It is the responsibility of the recipient of this document to comply with all relevant laws and regulations.

Products offered by iCapital are typically private placements that are sold only to qualified clients of iCapital through transactions that are exempt from registration under the Securities Act of 1933 pursuant to Rule 506(b) of Regulation D promulgated thereunder (“Private Placements”). An investment in any product issued pursuant to a Private Placement, such as the funds described, entails a high degree of risk and no assurance can be given that any alternative investment fund’s investment objectives will be achieved or that investors will receive a return of their capital. Further, such investments are not subject to the same levels of regulatory scrutiny as publicly listed investments, and as a result, investors may have access to significantly less information than they can access with respect to publicly listed investments. Prospective investors should also note that investments in the products described involve long lock-ups and do not provide investors with liquidity.

Alternative investment products and services may be offered through iCapital Securities, LLC. Structured investment products and services may be offered through Axio Financial LLC and/or SIMON Markets LLC. iCapital Securities LLC, Axio Financial LLC, and SIMON Markets LLC are each a registered broker/dealer, member FINRA and SIPC, and an affiliate of Institutional Capital Network, Inc. (“iCapital”). Annuities and insurance services provided by SIMON Annuities and Insurance Services LLC, an affiliate of iCapital. iCapital Advisors, LLC, a subsidiary of iCapital, is an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). Outcome Driven Strategies, LLC and Cornerstone Advisory, each an investment adviser registered with the SEC, provide investment advisory services for the structured investment separately managed accounts described herein. Outcome Driven Strategies, LLC is jointly owned by Axio Advisors LLC and Cornerstone Advisory (not affiliated with iCapital). Alaia Capital LLC, an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”), acts as a portfolio consultant to m+ funds and is an affiliate of iCapital. These registrations and memberships in no way imply that the SEC, FINRA or SIPC have endorsed the entities, products or services discussed herein. iCapital and iCapital Network are registered trademarks of Institutional Capital Network, Inc. Additional information is available upon request.

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