May 2024 Private Performance

After April's correction, the public markets bounced back with a very strong May. The S&P 500 erased it's loss of April with a great 4.8% in May. And then the NASDAQ-100 bounced back with a 6.3% in May. And even the AGG came back with a 1.29% gain, although it's still down on the year. The strong run up in the S&P and NASDAQ has taken all the potential headwinds and said "So what". But talking with clients and prospects, nobody feels good where the market is and overall seem very pessimistic. A very big mismatch of the reality in the markets and what we feel. This is why it's important to have a balanced portfolio that can take advantage of the public markets when they are booming. But also have parts of the portfolio that are more aligned with a possible correction or increased volatility that investors seem to think is around the corner. We do that with our private investments. So let's see how they did in a booming May.

Private Equity

BPIF has not reported on May performance as of this writing, but has performed well on the year through April. I'm still very excited about where this fund is headed. Interest rates typically are a headwind for a fund that has VC and Buyout focus. But those are also the types of deals that we would expect to boom coming out of that interest rate enviroment. iDirect gave us April and May's numbers over the last 30 days. While April's numbers were down slightly, May was a standout number. As I stated last month I expect this fund to out perform it's index(MSCI All-Country World Index) by a healthy magin. KKR, Vista, and Warburg Pincus have a strong track record this fund gets to pick amongst the best deals flowing through all 3.

Private Real Estate

Nuveen's Global Cities REIT finally put up a positive number after a couple of down months. The big difference in private real estate vs. public real estate, is when there is a down month or even year, we are talking about being down 1% on the year vs. 10-15% that can happen in public markets. A much tighter control on volatility with this ownership structure. Real estate should be boring and predictable in a portfolio. Along those lines, BREIT was up slightly in May, just like April. And is now up 2.31% on the year. There were no new properties purchased this past month.

Private Credit

Like a broken record, another month of both Carlyle's and Blackstone's funds growing in the right direction. Both are now up over 5% on the year. And both are sporting dividends over 10%. Priority Income Fund had a nice bounce month in May. While this fund will have a bit more volatility than our private credit funds. There still should be growth overall, outside of what the dividend brings to portfolios.

Performance	May	Year to Date	Annualized Dividend Rate
Blackstone REIT¹	.10%	2.31%	4.7%
Nuveen Global Cities REIT²	.58%	.31%	5.62%
Blackstone Private Credit³	.9%	5.0%	10.4%
Carlyle Tactical Credit⁴	1.06%	5.11%	10.37%
Priority Income Fund⁵	2.41%	4.2%	12.44%
iDirect Private Markets Fund⁶	2.28%	3.51%	-
BlackRock Private Investment Fund⁷	%	3.82%	-

Conclusion

Portfolio building is all about balance. Whether you are focused on growth or income or somewhere in between. It's all about having the diversification that helps lower volatility. Keeping that volatility low is what keeps investors calm, which helps keep investors focused on their goals and not the craziness of the day.

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