Stableton CAIA CIO Roundtable - Investing in Private Markets During a Risk-off Environment

In late 2022, Stableton and the CAIA Association (the global professional body dedicated to creating alignment, transparency, and knowledge for investors, with an emphasis on alternative investments) co-hosted a CIO Roundtable on the topic of "Investing in Private Markets During a Risk-Off Environment".

The starting point for the event was a survey conducted by Stableton and the CAIA Association in the spring of 2022. The survey found that investors sought opportunities to diversify and achieve returns, but faced challenges in accessing good investment opportunities and managers. Despite the risks, investors expected to increase allocations in private markets, with technology, healthcare, and ESG being the most popular areas of interest. However, the investment horizon changed due to the outbreak of war, rate hikes, and the economic recession.

Standing in a room filled to capacity with institutional and private investors, CAIA's Zurich Chapter Executive Oli Mueller gave a warm welcome and an excellent introduction to the topic.

Oli then handed over to panel moderator John Bowman, Executive Vice President of the CAIA Association, who has 20 years of experience in the industry, including several investment-related roles.

High calibre panel

The panel featured investment heads and CIOs from leading Swiss institutions, such as the pension fund of the Swiss Railways (SBB), a globally operating asset manager, investment consultant Complementa, a family office, and our own Christian R. Schmid, who is the Head of Investments at Stableton.

The panelists shared their insights and experiences on various topics. They also discussed the challenges and opportunities they saw in the current market environment and how they were adapting their investment strategies to navigate these challenges.

Main themes

The discussion focused on three main themes:

• First, it explored the role of technology in enabling access to private markets, improving liquidity, and reducing the cost of investing.

• Second, it discussed the importance of building strong relationships with managers and other market participants to access quality investment opportunities.

• Finally, it examined the role of regulation and standards in promoting alignment, transparency, and trust in private markets.

Overall, the roundtable discussion provided valuable insights and perspectives on investing in private markets during a risk-off environment, and offered practical guidance and best practices for investors looking to capitalize on the opportunities in these markets.

Oli Müller concluded the event by thanking the panelists and noting that the motivations for investing in private markets have not changed and that private market investors are aware of the importance of education and diversification in building a high-quality portfolio. He advised attendees to consider alternative investments, including private markets, as a strategic part of their portfolio, but to seek out qualified professionals for assistance. The event ended the same way it had started, with a networking period.

We would like to extend our heartfelt thanks to our CAIA counterparts who went above and beyond the usual cooperation for this fantastic project:

• Laura Merlini, Managing Director, EMEA, Industry Relations

• Monica Lira, Chapter Relations & Marketing, EMEA

• Olivier P. Müller, Chapter Executive in Zurich

• John L. Bowman, Executive Vice President

There is more to come in 2023. Stay tuned.