NEW YORK, Dec. 18, 2023 /PRNewswire/ — Hi2 Global concluded its 2023 annual meeting and celebrated its 9^th anniversary at Fordham University on October 5, 2023. Hi2 Global investors, local family offices, investment bankers as well as senior investment professional gathered and exchanged views on global asset allocation.

The event started with an opening remark by Jerry Wang, founder and CEO of Hi2 Global. Jerry made a keynote speech on the “Summary and Outlook of Global Asset Allocation”, reviewing the performance and trend of the alternative investment market over the past decade from a long-term investment perspective.

The significance of alternative investment has risen

With deteriorating geopolitical situations, rising inflations and central banks’ rate hikes in 2022, global equity assets were generally under pressure while the traditional 60/40 portfolio went through short-term failure, highlighting the importance of alternative investment. Jerry said that while the 12-year bull market of the private equity market has ended, private debt has continually maintained resilient performance.

The returns of venture capital and private equity investments, from 6-month to 15-year period, have exceeded the average return of the secondary market of the same period. When it comes to the 25-year investment cycle, the difference between the returns of the two is more than double, according to Jerry.

Private credit has become the second largest private market strategy

As restrictions on bank loans get tighter, the private credit market has come to the fore. In financial market, private credit has surpassed venture capital to become the second largest private market strategy. High-yield bonds and leveraged buyout loans are gradually being replaced by direct lending. $52.5 billion was raised in the second quarter of 2023, with direct lending accounting for the largest share.

From an investor’s perspective, private credit can help diversify portfolio risks, achieve higher risk-adjusted returns than traditional assets, and help generate positive social effects in certain areas, especially in emerging markets.

Sandy Xu, Managing Director of Hi2 Global, gave a keynote speech on “Global Asset Allocation Strategy.”

From the perspective of emerging markets, Sandy analyzed the trend of the center of globalization shifting to emerging markets. She pointed out that the global supply chain is constantly creating spillover effects, encouraging investors to pay attention to the trend of re-globalization, and emerging markets such as Asia, Africa and Latin America are increasingly attractive.

Risk control is key to investing in emerging markets. By leveraging its unique strategies in the fields of alternative credit and emerging technology venture capital, Hi2 Global has significantly reduced investment risks.

Emerging technology venture capital strategy: integrating technology and capital

When it comes to emerging technology venture capital, Sandy pointed out that Hi2 Global adopts unique investment strategies, focusing on emerging markets such as Asia, Africa and Latin America, paying close attention to early stage investment opportunities in the fields of finance and digital technology. By exporting capital and technology, Hi2 Global deeply incubates entrepreneurial teams and actively contributes to the ecological construction of emerging markets.

Responsible investment leads sustainable development

Hi2 Global joined the UN-supported Principles for Responsible Investment in 2022, integrating environmental, social and governance into investment decisions, Sandy said. Hi2 Global adheres to the concept of responsible investment, is committed to creating positive value for environment and society, and continues to seek investment opportunities with social or environmental benefits and that can bring long-term returns.

Hi2 Global also actively promotes ESG development to create positive value for the environment and society, especially in improving the society or environment in emerging markets, and supporting ethnic minorities and female founders.

Panel: Investment Opportunities of Re-globalization

Jerry chaired a panel discussion on the “Investment Opportunities of Re-globalization”, exchanging views with four senior guests on issues like inflation in the US, IPO market, investment opportunities in emerging markets and digital assets, providing investors with diversified perspectives in the context of changing global economic situation

Panel: Family Fund Allocation to Alternative Assets

Sandy chaired the panel discussion on “Family Fund Allocation to Alternative assets”, sharing insights on alternative asset allocation, hedge fund, and real estate industries with three guests from relevant industries, providing a variety of investment options for individual and corporate investors who are concerned about the latest changes in the financial market and industry development.

Following the successful conclusion of the 2023 annual meeting and 9^th anniversary, the Hi2 Global team will continue to release the “Global Asset Allocation Summary” series to share and jointly develop the global asset allocation market with investors.

SOURCE Hi2Global