Research Reports

For investment management, today’s “brutal fact” is that LP expectations are often outpacing GPs’ capabilities. In addition to more tailored investment products, investors demand deeper insights into data and strategy, robust reporting, and attractive risk profiles—all managed within a seamless digital experience. While it may be tempting to simply “make do” with your existing systems and processes, GPs who hope to make that coveted leap from good to great need to recognize the enterprise-building value of integrated solutions that support the entire investment lifecycle, regardless of investor size, asset class, or investment structure.

From 5G mobile to Zoom conferencing, and from TikTok to video streaming, global consumption and processing of digital products continue to accelerate, leading to surging demand for new data centre (DC) capacity for data to be stored and processed. Demand in the APAC region is equally strong for both dedicated and colocation DCs. Singapore, Tokyo, Osaka, Seoul, and Sydney are identified as key markets for new DCs, with the major Indian cities of Mumbai, Bengaluru and Chennai also showing promise due to growing digital services sectors, strong government support, and robust long-term economic prospects.

In this publication, we cover for the first time the European office markets beyond the usual prime segment of the market, to fully capture the polarisation between prime and secondary buildings which has accelerated with the increase in remote working.

For much of Q1 2024, views converged on anticipated interest rate cuts by H2 2024. Late March, however, brought new data which painted a story of economic resilience (especially in the U.S.) and lingering price pressures – the rhetoric has shifted for now, but noisy data will likely continue to contribute to volatility in futures and swap markets. Although the delay in rate cuts indicates a healthier-than-expected economy, elevated debt costs have hindered efficient market transactions, and these delays are a net negative for private real estate markets. Based on information available at the time of this report, it seems likely that Asia Pacific’s markets (excluding Japan and China) will lag the Fed on a pivot and begin a cutting cycle.

U.S. economic growth slowed sharply over the first three months of 2024, decelerating from more than 4% annualized growth recorded during the second half of 2023 to only 1.6% for the first quarter. Previously reliable business cycle indicators such as the Index of Leading Economic Indicators continue to signify additional slowing ahead with heightened probability of actual economic contraction (i.e., recession) over the next 12-24 months.

Food, one of life's basic necessities, relies on cold storage for its safe, efficient, and effective distribution to U.S. and global populations. The ability to safely deliver food and other temperature-sensitive products from the point of origin to final consumption is a hallmark of a modern and prospering economy; indeed, as José Andrés put forth, food is everything. In aggregate, the various entities and facilities that compose this distribution system are commonly known as the global cold chain, and this chain is widely regarded as a critical component of our economic infrastructure. As we will highlight in this paper, the global cold chain is perhaps one of the most under-invested and under-improved infrastructure sectors in the U.S. and across the globe.

With one quarter in the books, the narrative for the US commercial real estate (CRE) market remains largely unchanged. The economy continues to expand, supporting generally healthy space market fundamentals, which are maintaining their general trajectory, both overall and within each property type. But the capital markets remain largely stymied by relatively high interest rates. Consequently, many in the CRE market are growing increasingly frustrated with the Fed and monetary policy. Despite these challenges, the balance of risks still skews positive for CRE over the next 12-18 months. We remain broadly positive on the outlook and continue to foresee better overall performance for CRE over the balance of the year. But what does that look like and how can investors best position themselves for this future?

In our monthly Insights into Private Markets (IPM), we provide you with bite‑sized updates into private equity, private credit, real estate and infrastructure. This month we look at interest rate cuts and the real estate market, the US elections and the risk to clean energy, the steady private equity performance into the mid‑year and we provide a market update on the private credit industry.

As the commercial real estate landscape shifts, a significant window for investment is opening. With nearly $1.7 trillion of commercial real estate debt maturing between 2024-2026 and traditional lenders pulling back, a financing void is emerging. This void is particularly pronounced in the multifamily sector, where valuations have readjusted from their COVID-era highs yet demand for housing remains robust.

The life sciences industry and its real estate demand is growing, aided by demographics and scientific progress. Life sciences is a defensive and fast‑growing sector that requires real estate assets to meet its growing demand. Today, those assets are in short supply. This represents an attractive risk-adjusted investment opportunity for value‑add and core investors alike: real estate focused on meeting the increasing needs of this part of the economy.