Private-market assets are all the rage, but are they worth the bragging rights?
Higher yields on corporate bonds raise the hurdle rates for alternatives. Are you paid enough for the illiquidity and higher risks?
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Genevieve Cua
PRIVATE bankers espoused the value of alternative investments when interest rates were ultra-low some years ago. They continue to push alternatives today when rates have climbed steadily and substantially.
But are alternatives – such as hedge funds, private equity and private debt – all they are cut out to be? How appropriate are they for individuals who qualify as accredited, but whose total portfolio may be far less than US$10 million?
Under Singapore’s rules, those who have net financial assets of at least S$1 million or income of at least S$300,000 in the last 12 months qualify as accredited investors.
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