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Private Markets: Private Credit, Private Equity & Alternatives.
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July 18, 2025Private Markets: Private Credit, Private Equity & Alternatives.
July 28, 2025Alternative Investments: The primary block to modern portfolio diversification
25 July 2025
Many current investment portfolios are still articulated around the famous 1952 paper from Markowitz. The Nobel Laureate proposed a 60% Equity and 40% Bond allocation highlighting the robustness and resilience of returns of such a portfolio across time. Since then, the financial markets have seen tremendous advancement in terms of investment alternatives to the 3 main asset classes available then: Cash, Bonds and Equities. Alternative investments, to the detriment of the investors, have been a lagging component of most allocation models.
Benefits of Alternatives within a classical asset allocation
Many large asset managers have allocated into alternative investments, but to a level still inferior to what is viewed as the new 60/40 portfolio: the 50% Equity, 30% Bonds and 20% Alternatives.
As Larry Fink, put it in his 2025 letter to investors: “The future standard portfolio may look more like 50/30/20—stocks, bonds, and private assets like real estate, infrastructure, and private credit.”
Blackrock’s CEO highlighted the benefits that private assets bring one’s portfolio:
- Stability, with lower volatility investments
- Returns, with higher historical performance
- Inflation protection with income streams rising along with inflation.
All asset classes have environments where they outperform and situations where they perform poorly. As long term investors, fund managers and particularly Pension funds have to build a portfolio that is, in the long run, immune to financial storms and able to deliver the required returns.
As Ray Dalio coined it, these “All Weather” Portfolios must have the ability to produce returns in both positive and difficult economic conditions.
Private investments enhances the ability of a portfolio in terms of capital protection, return visibility, volatility control and decorelation to traditional financial assets.
These intrinsic properties of Private investments make them the ideal addition to manage the ebb and flows of financial markets taking a long term perspective.
Private Credit- the best diversification opportunity in the Alternative space
Private Credit is one of the rare asset classes that is capable of offering a better risk/reward ratio, inflation protection and decorrelation from Equity and Fixed income markets.
The Private credit market is home to various lending strategies, from trade finance to real estate financing, to merchant cash advance and purchase of future receipts, the asset class is rich in opportunities.
The Private credit market has seen very strong growth on the back of traditional lenders such as banks retreating from these specific financing avenues and on the back of private lenders ability to provide flexible, agile and secure financing with unprecendented speed of execution.
A Small to Medium business in urgent need of financing can now get funded within days. This new type of financing is contributing to the growth and robustness of the SME sector and that dynamic allows the private lender to produce much higher returns than a traditional lender for a similar risk profile.
Stewards and Private Credit
As specialists in alternative investments, Stewards Investment Capital has been a major player within the private credit space since 2023.
We were early in identifying the opportunities presented by this segment as one of the most dynamic of the US economy.
Over the past years we have built a strong team in the US and partnered with major players in the industry to create the necessary infrastructure to invest into private credit lending, particularly in 2 of the most promising sub sectors of private credit: Real Estate Bridge Financing and Merchant Cash Advance.
Our Income growth fund allows investors to participate in high end and ultra luxury US property developments while our Private Credit Fund focusses on helping US SMEs fund growth and operational requirements.
Private credit has long been recognised by Stewards as an unprecedented investment opportunity - an insight only recently echoed by global leaders such as BlackRock, KKR, McKinsey, and several of the world’s leading investment banks.
As a precursor in private credit investment, we have spent the past years working to bring these exceptional investment opportunities to our investors and partners.
We believe that over the next decade, the Private Credit sector offers exceptional risk adjusted return profile and have hence developed the appropriate framework, structures and “savoir-faire” for our investor to be part of that growth while empowering SMEs to reach their full potential.
About Stewards Investment Capital
Stewards Investment Capital is a boutique investment advisory firm with a track record of over 25 years under the Stewards Group of Financial Companies. Strategically positioned in Mauritius, South Africa, and the USA, we tailor niche investment solutions to high-net-worth individuals and institutional investors.
Guided by a high-alpha approach and fuelled by a passion to be a catalyst for growth, our commitment to our investors is rooted in our mission to grow and nurture their wealth, building lasting fortunes and creating enduring legacies to achieve real freedom. This endeavour is powered by our team of passionate investment professionals, each contributing decades of experience and expertise to our firm.
For further information about Stewards Investment Capital, please visit stewardsinvestment.com/
For more information please contact:
Suneeta Motala
Chief Marketing Officer
Forbes Communication Council Member
Email: suneetamotala@stewards.global, thestewards@stewards.global
T: (+230) 466 7533
