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Chart of the week

Investor demand for private assets remains robust

As investment opportunities shift, this week’s chart looks at institutions’ historical fundraising across private markets.

July 14, 2023

Historical fundraising for private market funds

Source: Preqin, as of June 30, 2023.

  • Last year’s bear market followed by the extraordinarily narrow rally of 2023  has highlighted the importance of finding lower or uncorrelated sources of return across full market cycles.
  • Institutional investors such as pension funds, university endowments and sovereign wealth funds have long turned to private markets, including private credit and private equity, in an effort to diversify portfolios and generate strong risk-adjusted returns.1
  • While institutions have been diversifying outside of traditional public markets for decades, individuals have faced hurdles in accessing private markets, including high investment minimums and suitability requirements often associated with private asset funds.
  • Due to investor demand for differentiated sources of income and growth, diversification has helped spur a democratization of private assets with asset managers increasingly designing investment solutions with the individual investor in mind.

  • Preqin, as of June 30, 2023.

The chart of the week and any accompanying data is for informational purposes only and shall not be considered an investment recommendation or promotion of FS Investments or any FS Investments fund. The chart of the week is subject to change at any time based on market or other conditions, and FS Investments and FS Investment Solutions, LLC disclaim any responsibility to update such market commentary. The chart of the week should not be relied on as investment advice, and because investment decisions for the FS Investments funds are based on numerous factors, may not be relied on as an indication of the investment intent of any FS Investments fund. None of FS Investments, its funds, FS Investment Solutions, LLC or their respective affiliates can be held responsible for any direct or incidental loss incurred as a result of any reliance on the chart of the week or other opinions expressed therein. Any discussion of past performance should not be used as an indicator of future results.

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