
Alternatives Digital assets: Is the bitcoin bull run just getting started?
Five key factors suggest cryptocurrencies may continue their 2024 momentum and see positive performance in 2025.
Alternative opportunities is a quarterly report from Invesco Solutions. In each new edition, we look at the outlook for private market assets. In particular, we focus on private credit, private equity, real estate, infrastructure and hedge funds.
We remain neutral on how we’re allocating risk within our alternatives portfolio due to elevated downside growth risks, high equity valuations, and benign capital markets activity. In general, we’re more defensive, favoring private debt and hedged strategies versus private equity.
We remain constructive on the backdrop for direct lending in 2025, given macroeconomic and anticipated deployment tailwinds. Real estate credit remains our preferred way of accessing real estate markets, with the anticipation of a bottoming of valuations coming in 2025.
PE exit activity appears to be improving this year from cycle lows on the backdrop of an improved financing environment with lower interest rates and less regulatory uncertainty. Deal activity is also anticipated to improve, given lower funding rates and a more robust lending environment. Growth strategies are still favored.
Key to our outlook for 2025 is the fact that global interest rates have started to decline, increasing confidence in real estate markets and enabling a recovery in transaction volumes. Private market values have continued to fall while public market prices have started to recover, leading us to anticipate a recovery of private property values.
Spreads within eventdriven strategies remain high despite limited capital market activity from mergers and acquisitions as private equity remains sidelined. Trend-following strategies have historically benefited from a tailwind during periods of high and declining rates.
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Five key factors suggest cryptocurrencies may continue their 2024 momentum and see positive performance in 2025.
Each month, the Invesco SteelPath team provides an update and insight on the most recent midstream industry happenings. Each monthly commentary provides: market performance update, recent news, and chart of the month.
The public REIT market can serve as a leading indicator for the private property market, so we believe private US real estate is poised for recovery.
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Information is provided as of December 31, 2024, sourced from Invesco unless otherwise stated.
A spread in finance is the difference between two related values, such as prices, rates, or yields.
Alternative products typically hold more non-traditional investments and employ more complex trading strategies, including hedging and leveraging through derivatives, short selling and opportunistic strategies that change with market conditions. Investors considering alternatives should be aware of their unique characteristics and additional risks from the strategies they use. Like all investments, performance will fluctuate. You can lose money.
Event driven strategies refers to an investment strategy in which an institutional investor attempts to profit from a stock mispricing that may occur during or after a corporate event.
Trend following strategy is an investment or trading approach that aims to profit by identifying and riding sustained price trends in various markets
The opinions referenced above are those of the author as of January 2025. These comments should not be construed as recommendations, but as an illustration of broader themes. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.
Investments in real estate-related instruments may be affected by economic, legal, or environmental factors that affect property values, rents or occupancies of real estate. Real estate companies, including REITs or similar structures, tend to be small and mid-cap companies and their shares may be more volatile and less liquid
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