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November 2023 Private Performance Thumbnail

November 2023 Private Performance

The public markets came roaring back in November. I hope your portfolios were setup to take advantage. While I love private investments and their ability to smooth out volatility and add alpha to portfolios, November reminds us that you never really know when the public markets will explode to the upside. 

Smoothing out volatility is part of the reason that private equity is such an important part of a portfolio. While the markets have come back strong this year, it's important to remember that the S&P 500 and Nasdaq are only just got back to where they were at the end of 2021. Again this is where the private equity parts of the portfolio keep you from having to bounce back from the down years in the first place. While the numbers take a while to come in, both funds that I use are doing their part. Since our October performance post, iDirect reported their September numbers, which came in very strong at 2.78% on the month. Worth remembering that public markets were down 5% in September. I'm excited to see how the performance for the rest of the year shakes out in these funds.

While private equity has performed well, the private REITS have had their down moment in 2023. Where they buoyed portfolios in 2022, they have been flat and slightly down in 2023. And that's the difference, in even in their tougher moments, they are not bringing down the portfolio. Both funds are still providing the volatility and non-correlated price movements that they are supposed to.

And then there is private credit. Blackstone's and Carlyle's funds have been all-stars in 2023. These funds are both over 12.5% on the year. These funds have taken full advantage of the rise of interest rates, with the floating rate nature of their structure. Even when rates come down in the future, these funds have all kinds of tailwinds that should keep them important pieces of your portfolio.

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

  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 November 30, 2023
  8. Performance through September 30, 2023

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