February 03, 2023
Looking Beyond ‘23
Our framework identifies three primary portfolio implications for navigating a new market environment:
1. Balanced Asset Allocation: Balanced asset allocation will be critical. The era of simple stock/ bond diversification is likely over.
2. Higher Real Assets Correlation: Commodity demand, US dollar weakness, and pressure on long-duration sectors will shift investor focus toward emerging markets and other market segments with higher real asset correlation.
3. Strong Governance & Risk Management: More inflation and geopolitical volatility will put a premium on a dynamic approach to risk management and strong governance norms.
In Buyouts’ latest Emerging Managers Report, Caroline Dallas, a Director in GEM’s Investment Research Group, offers her perspective on the growing independent sponsor market and shares why, for dealmakers who are looking to branch out, now might be the right time to take the leap.
Kelly Barofsky, a Director in GEM’s Investment Research Group, joined Giovanni Amodeo at ION Analytics to discuss GEM’s approach to identifying opportunities in the lower mid-market, including the importance of sector specialization and manager-investor alignment.
Jay Ripley, Head of Investments, spoke with FundFire about the recent close of GEM’s inaugural independent sponsors fund and shared the importance of manager diligence in establishing long-term GP-LP relationships.
Let’s start a conversation about how we can help.
