Asset Managers · Asset allocations

Avoiding dry powder involves choosing complex investments

Photo via Unsplash.

Record levels of funds invested into private asset strategies has led to the phenomenon of “too much dry powder” in which new investments fuel higher entry valuations for the slower-growing number of underlying investment opportunities. Nils Rode, Schroders Capital’s Chief Investment Officer, explained that avoiding this involves locating successful investments, those that benefit from a “complexity premium”, as private assets move into a new phase.

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