Tarun Nagpal, CEO and founder of global alternatives solutions provider S64, discusses the outlook for alternatives and the private markets industry with this news service.
In recent years, investors have piled into alternative
investments such as private equity, credit and property amid a
low-yield environment, but rising interest rates have created
headwinds for these asset classes, a London-based firm has told
this news service.
Private equity is a great diversifier in a volatile market, Tarun
Nagpal at London-based global alternatives solutions provider
S64, highlighted in a
recent interview with this news service.
“However, the outlook is more challenging, in view of the higher
interest rates,” he said.
Even so, Nagpal sees many opportunities for investors,
especially in private credit and infrastructure, which
provide stable yields and an inflation hedge. This has also
been highlighted by Preqin, the research
firm, in its report on The Future of Alternatives
In 2027, which predicts that global private capital assets
under management will almost double to $18.3 trillion by 2027.
See more
here.
Nagpal was previously global head of alternatives and multi-asset
solutions at Deutsche Bank. When Deutsche Bank cut its
alternatives offering, S64 was spun out as a European solutions
provider. Another firm that operates as a tech provider of
alternative investments is iCapital, which is
headquartered in New York and operates internationally.
Nagpal works with asset managers and private banks across private
equity, credit infrastructure and impact to develop solutions for
private banks and wealth managers in Europe and Asia. Its
technology platform offers a lifecycle management of alternative
assets, from structuring and onboarding to financing, as well as
secondary market capability.
Down on the farm
Highlighting other investment opportunities, Nagpal said he has
seen increased demand for agricultural land, which acts as
an inflation hedge, especially in regenerative agriculture in
Australia.
Regenerative agriculture involves the use of farming and grazing
practices which aim to combat climate change by rebuilding soil
organic matter and restoring degraded soil biodiversity. Often
this doesn”t use tillage, resulting in carbon drawdown and
improving the water cycle at the same time as enhancing
profitability. “Anything that is related to food security and ESG
is of high interest to clients,” he said. Nagpal has seen a big
increase in demand from clients for renewable energy-focused
investments and is currently working on two projects related to
that with private banks.
In addition, towards the end of last
year, Nagpal launched a new access fund addressing the
growing demand of private investors to access sustainable
infrastructure projects worldwide. The S64 Access Fund enables
private wealth investors to participate in an institutional
infrastructure strategy focused on growth and yield with positive
environmental and social impact at its core.
Nagpal is a specialist in Long-Term Asset Funds (LTAFs), which
are open-ended investment vehicles, as well as European Long-Term
Investment Funds (ELTIFs) and semi-liquid evergreen solutions. He
is also a specialist in the private markets industry more
generally and the uptake in mandates from private banks and
wealth businesses to serve high net worth individuals.
(Story originally published on 21 September.)