June 2023 Private Performance
The June performance numbers are in and it was another great month for the private credit universe. We also have another new private investment option in use with clients, the Blackrock Private Investment Fund. This is a newer private fund from Blackrock. Like all the private funds that I use for clients, this fund has liquidity. This is a true private equity fund that is focused on direct and secondary investments with a global approach, although 68% is invested in the US. The other thing you will notice with this fund and the iDirect private fund, is that there's a even longer delay in updating performance. Where as the REITs and private credit are usually 20-25 days later, the PE funds can be closer to 2 months. Meaning we won't know June's performance until mid August. So I will be looking back from time to time to show the updated PE performance. Now for private investments that do have June numbers, the private REITs both had a positive months with Nuveen GCR coming back to the positive side. And as I mentioned, private credit continues to be perform, both funds were up over 1.3% in June. I mentioned last month how private credit is in a glowing environment. There may be long tailwinds in the space, even after we reach peak interest rates. As rates decrease on the down slope of this build up, dividend yields may go back to the 7-8% range. But the space will continue to grow as the big banks continue to reign in lending that started in the Great Financial Crisis.
| Performance | June | Year to Date | Annualized Dividend Rate |
| Blackstone's REIT1 | .96% | 1.31% | 4.6% |
| Nuveen Global Cities REIT2 | .29% | -1.19% | 5.41% |
| Blackstone Private Credit3 | 1.3% | 6.3% | 10.1% |
| Carlyle Tactical Credit4 | 1.35% | 6.59% | 10.09% |
| iDirect Private Markets Fund5 | 2.99% | 3.88%7 | - |
| BlackRock Private Investment Fund6 | 1.36% | 2.93%8 | - |
For reference, in June, the S&P was up at 6.47%, the NASDAQ-100 was up slightly higher at 6.5%, and the AGG(Bond Index) was up .81% and is up 3.03% through 7/19/2023. Even though I'm a big believer in the private and alternative space, we still want to have a core that can take advantage of the big gains in the public markets. This is about having a balance where having a consistent performance helps balance out a portfolio in peaks like we've had this year and the valleys we had last year. We can talk further if this is a strategy that you think could help support your overall portfolio construction.
- https://www.breit.com/performance/
- https://www.nuveen.com/gcreit/performance
- https://www.bcred.com/performance/
- https://www.carlyle.com/fund?_month=4&_year=2023
- https://idirectpmfund.com/idirect-pm-fund/performance/#performance
- https://bpif.com/portfolio-and-performance/default.aspx
- Performance through June 30, 2023
- Performance through June 30, 2023
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