Chief Investment Officer
The build out of our private market capabilities really extended from our view that interest rates were going to stay low for a very long period of time. So the private markets offered a premium to listed markets. It’s a illiquidity premium so you don't get access to your money as efficiently or as quickly as you do in public markets. But you do get paid for that for that lock up.
Managing Director and Head, Private Markets
That's a world where many things just aren't available on the public market and that's the private market world. So think of big real estate projects or bridges or airports or pipelines or ports, and that world is a very large investable universe.
Integrating a private markets program to complement a public markets program actually allows investors to build a more resilient portfolio, one that isn't as volatile, one that potentially earns better returns.
Our infrastructure program, our mortgage program and our real estate program actually work very well with a public stock investment program and a public bond investor program.
We want to build a resilient portfolio for them that will last through cycles and over a long time and actually deliver what their expectations are.
We wanted to be directly responsible to our clients and be held accountable to deliver. And so that meant that we wanted to buy the bridge directly or the real estate asset directly and set up solutions that allowed that. So fee efficiency, core, high quality and direct ownership were the principles that we built the private markets program around and that put our investors, it basically gave them access to the type of investments that the very largest institutions also desire.
So the principle of diversification really underlies the development of the specific private market strategy, but also we make sure it fits within the overall GAM philosophy.