No. Despite last week’s rate cut, we do not recommend that most investors increase their core real estate exposure. Although real estate assets should benefit from renewed Federal Reserve easing—which would lower debt costs and improve relative yields—valuations remain elevated and sector-specific challenges remain. While neutral on broad core real estate exposures at this time, […]
September 2025
In our previous articles for the PREA Quarterly, we noted that in 2024, for the first time since we began tracking fundraising trends, infrastructure fundraising activity surpassed that of real estate, as shown in Exhibit 1. Infrastructure continues to garner investor interest as the asset class provides resilient income with inflation protection, exposure to megatrends […]
July 2025
Generative AI marks a pivotal moment in AI, with the 2022 public release of OpenAI’s ChatGPT as a major milestone. As discussed in Part 1 of this three-part series, AI is a transformative technology paradigm that will continue to evolve over the next decade and beyond. While significant investment has fueled rapid growth in AI […]
July 2025
Last weekend, the United States conducted airstrikes on three of Iran’s principal nuclear facilities—Fordow, Natanz, and Isfahan. This marked a further escalation in Middle East tensions, which had already intensified after Israel began airstrikes on Iran on June 13. In response, Iran has now directly targeted US interests, launching missiles at US bases in Iraq […]
June 2025
Yes, California Carbon Allowances (CCAs) are an attractive investment opportunity, though they come with political tail risk. California’s Cap-and-Trade Program requires companies in regulated industries to purchase CCAs to offset a portion of their carbon emissions. The CCA supply is mandated to decline over time to support higher carbon prices and discourage emissions. After peaking […]
May 2025
Introduction Aaron Costello, Head of Asia, and Vivian Gan, Investment Director, Capital Markets Research Asian and global market volatility surged in early 2025 as US tariffs triggered global growth fears. Given the export-oriented nature of most Asian economies and their sensitivity to global growth and demand, the region may bear the brunt of US tariffs. […]
April 2025
No, we don’t think so. Gold has benefited from concerns about economic growth, inflation, and waning confidence in the US dollar, creating a perfect storm for bullish sentiment. While these factors could continue to support gold in the short term, the current momentum appears unsustainable. Gold’s recent climb to an all-time inflation-adjusted high increases the […]
April 2025
We expect public infrastructure equities to perform similarly to developed market equities in 2025, propelled by supportive regulations for energy transition and strong demand for power infrastructure to fuel AI. While we believe US REITs should underperform US equities, US private real estate funds raised in 2025 should generate above-average returns, benefiting from distressed deals […]
December 2024