{"id":9721,"date":"2019-05-20T15:16:43","date_gmt":"2019-05-20T13:16:43","guid":{"rendered":"http:\/\/relaunch.lpx-group.com\/media\/listed-alternatives\/"},"modified":"2025-01-14T15:25:56","modified_gmt":"2025-01-14T14:25:56","slug":"listed-alternatives","status":"publish","type":"page","link":"https:\/\/www.lpx-group.com\/de\/media\/listed-alternatives\/","title":{"rendered":"Listed Alternatives"},"content":{"rendered":"
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\n1. INTRODUCTION
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Alternative asset classes have delivered strong performance over the past decade. However, many investors face significant barriers to accessing these opportunities. Traditional closed-end funds in alternative investments often require high minimum commitments and involve long lock-up periods. In contrast, Listed Alternatives offer a more accessible pathway, providing daily liquidity and direct exposure to Private Equity, Private Debt, and Infrastructure asset classes.<\/p>\n

The following primer provides an overview to Listed Alternatives:<\/p>\n<\/div>\n<\/div>\n

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ALTERNATIVE ASSET CLASSES ARE INCREASINGLY GAINING IMPORTANCE IN INVESTMENT PORTFOLIOS.<\/h4>\n

Strategic asset allocation is encountering significant challenges. The increased correlation across international financial markets has made it difficult to achieve efficient diversification through traditional asset classes alone. In this context, alternative investments are gaining greater prominence. Over the long term, asset classes such as private equity, infrastructure, and private debt stand out for their unique risk and return characteristics, which are not replicable by other asset classes. Consequently, alternative asset classes have become a vital component of strategic asset allocation in institutional portfolios.<\/p>\n

The current interest rate environment has further accelerated the shift towards alternative investments. Infrastructure, in particular, has emerged as a compelling alternative to traditional real estate, offering distinct advantages. Meanwhile, private debt has evolved into a standalone asset class, complementing traditional fixed-income investments. Lastly, private equity is experiencing a resurgence, providing investors with access to untapped growth markets and cutting-edge technologies.<\/p>\n<\/div>\n

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Figure 1 \u2013 Overview on Asset Classes<\/figcaption><\/figure>\n

This primer highlights Listed Alternatives as an efficient gateway to alternative asset classes, including private equity, infrastructure, and private debt.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n


\n2. WHY INVEST IN ALTERNATIVE INVESTMENTS?
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ALTERNATIVE INVESTMENTS ARE PARTICULARLY SUITABLE FOR PARTICIPATING IN MEGA TRENDS.<\/h4>\n

In the long term, alternative investments are defined by their unique risk and return characteristics, making them a vital component of strategic asset allocation. Their diversification benefits are particularly significant, enabling more resilient and balanced portfolios. From a financial market perspective, alternative asset classes broaden the investment horizon and improve risk-adjusted returns in diversified portfolios.Beyond the financial-market theoretical arguments, what else supports investing in alternative asset classes? Investments are inherently tied to decisions about specific technologies. For instance, an investor purchasing shares in an automaker is inherently making a decision to align with the associated technologies and innovations.<\/p>\n<\/div>\n

technologies. This is particularly true for alternative asset classes, and especially for private equity. A successful private equity manager is constantly seeking out promising future technologies and identifying corresponding market leaders. Through private equity, investors gain access to exclusive deals and cutting-edge innovations that are rarely available via traditional investment channels. In the automotive sector, for example, these opportunities may include advancements in autonomous driving, breakthrough technologies in propulsion systems, sensors, innovative materials, and composites.<\/div>\n<\/div>\n
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Megatrends represent profound currents of change that shape global society over several decades. These transformative forces influence all aspects of society, including economics, politics, science, technology, and culture.<\/div>\n
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Figure 2 \u2013 Technology Adoption Rates
\nSource: Comin and Hobijn (2004) and others, LPX AG<\/figcaption><\/figure>\n<\/div>\n<\/div>\n
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TECHNOLOGY INVESTING<\/h4>\n

In this context, an investor in alternative investments is inherently a technology investor. To better understand the value drivers of alternative investments, it is essential to delve deeper into the concept of technology. Broadly, technologies can be categorized into the following three types:<\/p>\n