Alternative Investment Opportunities Through a Slowing Economy

From a global private capital fundraising perspective, 2022was down$318.8 billion to $1.2 trillion from the record raises of $1.6 trillion in 2021, a 25% decline. The fundraising trendline continueddownwardwithQ1 2023 at $210.8 billion ( FIGURE 5 ), a 42%decline year over year for the same period. The fundraising slowdown is in part driven by investors becomingoverexposed to illiquid funds (relative to allocation targets) due to depressed publicmarket portfolio valuations and a lack of capital returned fromprivate investments as a result of the slowdown in existingportfolio exits. However, there has also beena focus on scale and quality.With limitedpartnerships (“LPs”) focusedon their most core relationships, funds greater than$1 billion in size secured75% of all fundraising in2022 and throughQ1 2023. From 2017 to 2021, these funds reflected61%of capital raised. 4 So despite a lower fundraising environment, a subset of the higherquality managers have dry powder available to execute their investment strategies and take advantage of potentiallymore attractive valuationsand/or market dislocations. FIGURE 5 : Global Pr ivate Capital Fundraising is Down $782.5 $403.1 $365.1 $466.0 $515.3 $656.7 $850.3 $893.7 $1,066.4 $1,200.3 $1,294.4 $1,432.8 $1,334.1 $1,560.4 $1,241.6 $210.8 1,956 1,478 1,621 1,894 2,226 2,561 3,723 4,352 4,773 5,040 5,236 4,905 5,191 5,602 3,319 382 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Capital raised ($B) Fund count Source: Pitchbook as ofMarch 31, 2023. Pitchbook Private Capital includesall global private equity, venture capital, real estate, private creditand infrastructure funds tracked by Pitchbook. 4 Pitchbook, as of March 31, 2023 OVERVIEW | WEALTHOUTLOOK 2023 | MID-YEAR EDITION │ ALTERNATIVE INVESTMENTS | 8