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August 2023 Private Performance Thumbnail

August 2023 Private Performance

The month of August's private performance numbers are in and it was another overall strong performance this month. As we did last month, let's start with the private equity investments clients hold. Remember Blackrock's private investment fund only releases performance on a quarterly basis, so we have a bit before we see Q3 numbers. But iDirect Private Markets Fund does update monthly, albeit a bit later than the other private investments that we use for clients. And July was another great one, with 2.02% return, building on June's 2.99% return and is now up 5.98% on the year. This fund is unique in it's structure. Vista Equity Partners, Warburg Pincus, and KKR led investments are the backbone of this fund. But the unique thing isn't necessarily the ability invest with these private equity powerhouses, although that's hard to do. It's iDirect ability to pick and choose which investments from each of these groups will make the most sense for iDirect's shareholders. Investing right along with the big 3 in deals that only make sense for the fund. This isn't just a fund of funds, it's the best investments from each of these groups. 

Now let's talk REITs.  Blackstone's BREIT had another great month and has been positive for the last 5 months now. A little bit of a different story with the Nuveen GC REIT. Although this fund is down YTD at -.94% after a slightly down August. Again that still out performs the public space, which was down almost 6% in August and down -17.4% on the year.  And remember that dividend's  tax advantages haven't gone anywhere.

Oh man, that private credit space has been a monster this year. There's a reason why every investment company on Earth is trying to launch a private credit fund. Carlyle once again had a great month, up 1.31% and now up over 10% on the year. And then Blackstone's BCRED had another stellar month at 1.1% and is just a tick behind Carlyle's tactical credit on the year at 9%.

Year to Date
Annualized Dividend Rate
Blackstone's REIT1
Nuveen Global Cities REIT2
Blackstone Private Credit3
Carlyle Tactical Credit4
iDirect Private Markets Fund5
BlackRock Private Investment Fund6

For reference, for August, the S&P was down  at -1.77%. The NASDAQ-100 was down -1.6%, it's first losing month since February. And then the AGG(Bond Index) was also down -.22% in August. This is almost opposite of last month, where public markets were booming. There's always an ebb and flow to public and private markets. I talk about balance in a portfolio a lot and this month is a good example why we want to own both. If you have questions if this might a be a good fit for your portfolio, please let me know.

  1. https://www.breit.com/performance/
  2. https://www.nuveen.com/gcreit/performance
  3. https://www.bcred.com/performance/
  4. https://www.carlyle.com/fund?_month=8&_year=2023
  5. https://idirectpmfund.com/idirect-pm-fund/performance/#performance
  6. https://bpif.com/portfolio-and-performance/default.aspx
  7. Performance through August 31, 2023
  8. Performance through June 30, 2023

This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.