Published in Private Wealth Magazine, December 2021
Secondary Private Equity. In times of low interest rates and high valuations on the stock markets, traditional portfolios of shares and bonds no longer work as well as they did in the past. “I therefore recommend restructuring your portfolio,” explains Florian Dillinger, Matador Partners Group: “Private equity, the investment in unlisted companies, stabilizes and increases returns.”
“Join me on a little journey through time to the year 2031,” says Florian Dillinger, Matador Partners Group, “and consider what returns are likely to be achieved in the individual asset classes in the coming years.”
According to the professional, this is fairly simple in the bond sector. “Even if we very slowly emerge from the negative interest rate era, it is unlikely to be more than one to two percent with bonds with high credit ratings – at best.” And even on the stock market, the trees will probably not grow into the sky as they have done so far. “At some point, the current high valuations will normalize. That’s why many professionals assume that equities will only yield an average of five to six percent per annum instead of the usual eight to nine percent.”
