How much should you invest in private equity, private debt, hedge funds?
Consider your life goals before mapping out your asset allocation, which may or may not include alternative assets
SOPHISTICATED money and family offices are moving to less liquid, higher-cost asset classes. Are you missing out on something?
From 1985 to 2021, Yale’s endowment achieved an annualised return of 13.7 per cent, growing from US$1 billion to over US$40 billion after making withdrawals for the endowment’s liabilities.
To give a sense of this 36-year achievement and the power of compounding, a good annualised return of 8 per cent – global public equities’ historical return over longer time frames – would have compounded your money by 16 times.
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