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On the other hand inflationary environments are great for infrastructure and Real Estate investments. If one type of private equity might be headed for a fall
by Bubble_Pop_22 4y ago
On the other hand inflationary environments are great for infrastructure and Real Estate investments.
If one type of private equity might be headed for a fall (nobody has the crystal ball) PERE (Private Equity Real Estate) and PEInfra (Private Equity Infrastructure) might benefit from it.
- bshipp 4y agoReal Estate benefits from cheap money, which dries up in an inflationary environment as central bank juice rates. We're already seeing sizable jumps forecasted for the remainder of 2022 and beyond as this inflationary spiral finally takes off.
- mancerayder 4y agoWhy would you manage real estate with a shitty cap rate, when you can buy bonds that have less overhead, risk and more liquidity? Real estate funds are a great idea when rents are going up, but it isn't so clear that will keep happening. Or appreciation is expected. That's definitely not happening anymore.
- Bubble_Pop_22 4y agoPension funds, insurance companies and SWFs don't reason like individuals, they have to put their money to work and for them the vast majority is govt. bonds anyway, even in the past 10 years. By the same token they have to decide what to do with the 15-20% which isn't bonds. Just as a matter of portfolio construction you don't want to be in equities, don't want to be in Venture. Only Real Estate and Infrastructure are left