Alternative Investment Opportunities Through a Slowing Economy

Accordingly, venture capital and growthopportunities for leading edge technologieshave the promise to provide novel solutions to today’s problems and disrupt legacy industries. At the same time, we are seeking to mitigatemuchof the technology risk by investing withmanagers focused on companies withdevelopedproductsand customers and significant value-add capabilities. With IPO markets currently stalled, disciplinedgrowthmanagers will be well positioned tomake follow-on equity investments into high-growth companies that will need towait longerprior to IPO, likelyat relatively better valuationsdriven by the reset in public companymultiples. Companies that raised capital at lofty valuations in2021 are nowhaving to seek new investment in a newvaluation environment in 2023. Cloudapplicationsand newdevelopments suchas artificial intelligence (“AI”)are generatingan acceleratingpace of data creation. TheAI market size alone is projected to reach$407 billionby 2027, up from$86.9 billion in revenue in2022. 13 This is, in turn, creating substantial storage and computingdemand that cannot be met by today’s global digital infrastructure. For example, 43% of the total data volume generated in history was created in the last two years ( FIGURE 13 ). The demand for new data infrastructure is incessant and we believe that managers specializing indigital infrastructure are best positioned to leverage theirdirect relationshipswith the largest generators of storage and bandwidth to effectivelyprovide the needed infrastructure. FIGURE 13 : Volume of Data/Information Created, Captur ed, Copied and Consumed Worldwide 0 20 40 60 80 100 120 140 160 180 200 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Data Volume in Zettabytes Source: Statista 2022. Chart shows the estimated annual volumeof data/information created, captured, copied and consumed globally in zettabytes. A zettabyte isequal to 1 bilion terabytes. 13 Marketsandmarkets 2023 OPPORTUNITIES | WEALTH OUTLOOK 2023 | MID-YEAR EDITION │ ALTERNATIVE INVESTMENTS | 22