September 2024 Private Performance

September brought continued challenges in public markets as inflation and geopolitical uncertainties persisted. Yet, private investments once again demonstrated their resilience and value within a diversified portfolio. While public and private markets each play distinct roles in building wealth, the consistent performance and strategic advantages of private investments reinforce their importance in achieving long-term goals. In this update, we’ll explore how key private equity, real estate, and credit funds performed in September and the unique opportunities they provide to investors.

Private Equity: Driving Long-Term Growth

The BlackRock Private Investments Fund (BPIF) delivered a solid 1.48% return in September, bringing its year-to-date return to 9.67%. BPIF’s diversified private equity exposure—spanning direct and secondary investments—continues to fuel performance. Over the past year, secondary investments stood out, delivering a 20% net return, reflecting the maturity and quality of these holdings.

Key contributors to BPIF’s success include investments in sectors like education finance in India and advanced cell therapy, while detractors included software and veterinary services. The fund’s structure of combining seasoned secondary investments with younger direct investments positions it for sustained long-term growth.

Additionally, iDirect Private Markets Fund posted a .50% return in September, bringing its year-to-date performance to 6.83%. The fund maintains its diversified focus on high-growth sectors, including healthcare, technology, and consumer discretionary. Standout projects like “Project Spirit” in e-commerce logistics and “Project Bottle” in sustainable packaging highlight the fund’s strategic targeting of transformational industries.

Private Real Estate: Adapting to Market Dynamics

Real estate funds like Nuveen Global Cities REIT (GCREIT) and Blackstone Real Estate Income Trust (BREIT) showcased the adaptability and strength of private real estate in September.

GCREIT delivered a 0.41% return, supported by its focus on resilient asset classes such as necessity retail, healthcare, and industrial properties. In addition to steady performance, GCREIT saw benefits from stabilizing property values and strong international market participation.
BREIT continued to excel with a 0.13% return for Class I shares, driven by strategic investments in Sunbelt markets and high-demand sectors like rental housing and data centers. BREIT’s focus on growth regions with favorable demographic trends further reinforces its value as a core portfolio holding.

Notably, both funds are adapting to a shifting interest rate environment, with BREIT’s dynamic repositioning in high-yielding industrial spaces offering strong income-generation potential despite macroeconomic challenges.

Private Credit/CLO: Yield Amid Stability

Private credit funds maintained their appeal as reliable income sources in September:

C•TAC delivered an annualized distribution rate exceeding 10% across its diversified investments in direct lending and opportunistic credit. Its ability to adapt to market changes through tactical portfolio adjustments ensures consistent income generation.
BCRED, with $60.4 billion in assets, posted a 0.70% return in September, offering investors an attractive 10.3% annualized yield for Class I shares. Its diversified portfolio across 52 industries highlights the strength of Blackstone’s expansive credit platform, which continues to prioritize selective underwriting to achieve risk-adjusted returns.

A new addition, OCIC (Blue Owl Credit Income Corp.), contributed to the private credit space with its compelling 10.17% annualized yield. Its unique structure as a perpetual life BDC makes it a standout in the sector, blending stable income with flexibility.

Meanwhile, the Priority Income Fund (PIF) maintained its steady performance, offering a 12.56% dividend yield, making it an appealing option for investors seeking higher income streams, albeit with a slightly higher risk profile.

Performance	September	Year to Date	Annualized Dividend Rate
Blackstone REIT¹	.13%	2.41%	4.7%
Nuveen Global Cities REIT²	.41%	1.88%	5.52%
Blackstone Private Credit³	.70%	8.5%	10.3%
Carlyle Tactical Credit⁴	.83%	8.35%	10.06%
Blue Owl OCIC⁵	.90%	8.03%	10.14%
Priority Income Fund⁶	.97%	2.71%	12.56%
iDirect Private Markets Fund⁷	.50%	6.83%	-
BlackRock Private Investment Fund⁸	1.48%	9.67%	-

Conclusion: Diversification for Stability and Growth

Private investments continue to prove their worth, delivering steady returns and income in a turbulent economic environment. Funds like BPIF, GCREIT, and BCRED provide compelling alternatives to public market volatility, complementing traditional equity and fixed-income investments. As we move into the final quarter of 2024, the diverse strategies within private equity, real estate, and credit funds position them well to navigate challenges and capitalize on opportunities.

Do you have questions about how private investments fit into your portfolio? Let’s discuss how to tailor your strategy to meet your 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.}