October 2024 Private Performance

While public markets navigated volatility in October, private investments largely remained steady, despite some slight pullbacks in select funds. This month’s performance underscores the long-term resilience of private investments, which continue to play a crucial role in diversified portfolios by balancing short-term challenges with steady income and growth opportunities.

Private Equity: Slight Pullbacks, Long-Term Potential

The BlackRock Private Investments Fund (BPIF) experienced a slight decline of -0.57% in October, bringing its year-to-date return to 9.05% . While this month’s result reflects short-term market pressures, the fund’s diversified portfolio across North America (66%) and resilient sectors such as software and healthcare continues to position it for long-term capital appreciation. Notable investments like Project Cloud and Project Compass remain significant contributors to BPIF’s strategy of combining direct and secondary opportunities.

Similarly, the iDirect Private Markets Fund posted a minor decline of -0.29% in October, reducing its year-to-date performance to 6.52%. While this month’s slight pullback reflects broader economic headwinds, the fund continues to benefit from its exposure to industry-leading private equity managers KKR, Warburg Pincus, and Vista Equity Partners. Recent investments in technology and industrials remain poised to drive future growth.

Private Real Estate: Resilient and Well-Positioned

Both Nuveen Global Cities REIT (GCREIT) and Blackstone Real Estate Income Trust (BREIT) delivered stability in October despite continued macroeconomic uncertainty.

GCREIT returned 0.15% for Class I shares, maintaining its focus on resilient sectors such as industrial, healthcare, and necessity retail. With 94% portfolio occupancy and strong positioning in growth regions, GCREIT continues to provide steady tax-efficient income with a 5.52% annualized distribution rate.
BREIT achieved a 0.64% return for Class I shares, maintaining its 4.8% annualized return since inception . BREIT’s strategic allocation to rental housing, industrial properties, and data centers, combined with a 67% concentration in Sunbelt markets, underscores its ability to adapt to long-term trends.

Private Credit/CLO: Income Stability Continues

Private credit funds delivered attractive income in October, reinforcing their defensive positioning during uncertain market conditions:

Blackstone Private Credit Fund (BCRED) delivered a 0.9% return, maintaining its 10.3% annualized distribution rate. With 97% senior secured loans and 98% floating rate exposure, BCRED continues to capitalize on elevated interest rates while preserving downside protection.
C•TAC Credit Fund maintained an annualized distribution rate exceeding 10%, leveraging its tactical flexibility across direct lending and opportunistic credit opportunities.
Blue Owl Credit Income Corp. (OCIC) posted a 0.84% return in October, reflecting its strong performance across first lien senior secured loans. With an annualized distribution rate of 10.15% for Class I shares, OCIC offers attractive yields with a focus on diversified middle-market lending .

Meanwhile, the Priority Income Fund (PIF) maintained its consistent 12.56% annualized dividend yield, offering higher income opportunities for investors seeking yield while managing volatility.

Performance	October	Year to Date	Annualized Dividend Rate
Blackstone REIT¹	.64%	3.07%	4.8%
Nuveen Global Cities REIT²	.15%	2.03%	5.52%
Blackstone Private Credit³	.90%	9.5%	10.4%
Carlyle Tactical Credit⁴	.88%	9.30%	10.01%
Blue Owl OCIC⁵	.84%	9.60%	10.15%
Priority Income Fund⁶	.28%	2.99%	12.56%
iDirect Private Markets Fund⁷	-.29%	6.52%	-
BlackRock Private Investment Fund⁸	-.57%	9.05%	-

Conclusion: Balancing Short-Term Challenges with Long-Term Opportunities

October 2024 highlighted the value of private investments in offering stability and attractive income amid broader market challenges. While funds like BPIF and iDirect experienced minor pullbacks, the long-term strategies of private equity, real estate, and credit remain intact, providing diversification and resilience for investor portfolios.

As we enter the final months of the year, private investments continue to offer strong risk-adjusted opportunities for growth and income, balancing short-term volatility with long-term financial goals.

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_{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.}