AsianInvestor, by Nishtha Asthana

“As base yields decrease, the difference between the targeted returns of private credit funds and private equity funds will widen, and institutional investors might increase allocations to private equity as returns look relatively more interesting.”

In a recent interview with Nishtha Asthana of AsianInvestor, Eddie Ong, Deputy CIO and Managing Director of Private Investments at SeaTown, shared valuable insights on the evolving landscape of private equity in the face of potentially lower rates.

One highlight from the article is the growing appeal of hybrid strategies in the current environment. Such strategies, combining both credit and equity features, are gaining traction among larger asset managers.

At SeaTown, the private equity investment strategy is developed with a long-term, through-cycle focus on value and platform building that is not predicated upon interest rates.

Both income and growth are key requirements of institutional investors’ mandates. As a firm, SeaTown has both private credit and private equity solutions for investors, as both asset classes are instrumental in helping LPs achieve a balanced portfolio construction in their asset allocation to alternatives.

Read the full article here (subscription may be required): Rate cuts fuel private equity’s push into capital-intensive sectors | Alternatives | AsianInvestor