Growth in Alternatives Investing
Alternatives are a critical part of the investment landscape with global alternative assets under management now representing 24% of investment portfolios globally (Preqin, 2016). This situation is mirrored in the $2.9 trillion fund management industry in Australia, where alternatives are the fastest growing asset class and forecast to be the largest asset class in Australia within the next decade (Rainmaker, 2016).
Above Average Returns, Diversification and Broader Opportunities
Alternatives have outperformed traditional asset classes, such as equities, debt and cash, over sustained periods of time, due to many of these investments being in private markets, where good investment managers can make proprietary investments and work actively towards building the value of these investments. Alternatives introduce a level of diversification into a portfolio and can provide a buffer to returns when traditional asset classes such as listed equities underperform. They also provide exposure to sectors that are underweight in listed markets.
Institutional Investor Success with Alternatives
On average, institutional investors globally invest 24% of their portfolios into alternative assets. For some institutions, this is as high as 60-70% (Willis Towers Watson, February 2016). The importance of alternatives to institutional investors, and increasingly to all investors, is due to the factors of enhanced returns, diversification and access to opportunities that are not available on listed markets. Individual alternatives assets can also help investors meet specific objectives, such as income or inflation protection.
Asset class segment shares 1997-2036
Source: Rainmaker Roundup – Volume 20 Number 3 (Sep Quarter 2016).
Why Blue Sky?
Track Record of Investment Outcomes
There is a significant gap between the best and worst managers in private markets, and the high performing managers are statistically more likely to continue to outperform. We have a track record of delivering returns of 13.9% p.a.1 (net of fees as at 30 June 2018) to our investors across private equity, private real estate, real assets, and hedge funds.
1. Past performance is not a reliable indicator of future performance.
Our Investment Process
We find compelling private market investments largely through our proprietary networks. We do extensive due diligence to understand every aspect of the asset. We use our experience to add sustained value to the people and businesses we invest in, and when we exit an investment, we find the right long-term owner for the asset, and in the process generate returns for our investors and investee partners.
We have built a world-class team of investment professionals and an enduring culture of partnership. Our team is comprised of people with the utmost integrity who are passionate about our business and the investments that we manage. They have vast experience and global networks and work fiercely to protect and grow our investors’ capital