Skip to main content
TOOLS
The Morningstar Fund Compare tool quickly evaluates different funds against one another. In addition to Nuveen funds, add any MF, CEF or ETF available from Morningstar. Important information and disclosures are included after you click Generate Report. Please ensure to enable pop-ups in your browser.
The Morningstar Portfolio Review tool compares and analyzes your portfolio holdings. In addition to Nuveen funds, add any MF, CEF or ETF available from Morningstar. Important information and disclosures are included after you click Generate Report. Please ensure to enable pop-ups in your browser.
utility-drawer__mobile-restriction Tools are currently unavailable for use on mobile. Please visit the desktop site.
fund compare tool image
Fund Compare
Quickly evaluate different MFs, CEFs and ETFs against one another
portfolio review tool image
Portfolio Review
Generate a detailed analysis of your portfolio holdings including MFs, CEFs and ETFs
Image of Municipal bond investing ladder tool
Municipal Bond Ladder Tool
Learn how a laddered portfolio may perform in rising rate environments
Powered by Morning star
Confirm your location and role
location select
language select
Blur dashboard

Why private capital?

5 reasons to select a private capital strategy

Income

Private capital can play an important role in portfolio construction as it helps create new exposures within traditional portfolios while also increasing overall income and return potential.

Sources: MM direct lending - Cliffwater CDLI, High yield - ICE BofA US High Yield Index, Broadly syndicated - S&P/LSTA LL 100. As of 1Q 2022


Risk-adjusted returns

Highly selective, diversified private capital portfolios with low losses can provide durable income & attractive-risk adjusted returns.

Source: PE Buyout & Junior Capital - Cambridge Associates, MM direct lending - Cliffwater CDLI, High yield - ICE BofA US High Yield Index, Broadly syndicated - S&P/LSTA LL , 4Q 2021


Well-positioned in rising rates

The floating rate nature of senior middle market loans positions the asset class well for an environment with rising interest rates. The trend line shows a strong positive correlation.

 

Sources: S&P LCD, Bank of England & CME Group, 31 May 2022


Diversification

Private market assets can serve as a less correlated portfolio diversifier.

Sources: MM direct lending - Cliffwater CDLI, Broadly syndicated - S&P/LSTA Leveraged Loan Index, High Yield - Bloomberg Barclays High Yield Index. Corporates - Bloomberg Barclays US Corporate Bond Index, Investment Grade Bonds - Bloomberg Barclays US Aggregate Bond Index, Treasuries - Bloomberg Barclays US Treasury Index., Q1 2022


Volatility management

Private debt is the Steadicam of credit markets which may offer lower mark-to-market volatility vs. public markets.

Source: MM direct lending - Lincoln International, broadly syndicated - Refinitiv LPC, Q1 2022


Private capital can play an important role in portfolio construction as it helps create new exposures within traditional portfolios while also increasing overall income and return potential. 

The opportunity in private capital

  Flags of the United States of America, China, Japan, Germany  

* Siblis Research, Preqin, December 2021. Notes: Net asset value (NAV) = AUM less dry powder. Total market capitalization of U.S. listed companies. There are significant differences between public and private equities, which include but are not limited to the following: public equities can provide liquidity and greater access to company information and private equities have a longer time horizon, are considered illiquid and private equity NAV is typically based on estimated valuations of portfolio holdings that may not reflect actual market value.  ** World Economic Outlook Database, December 2021, Middle Market assumption based on the definition by National Center for the Middle Market as of 2020 of U.S. businesses with revenues between $10MM and $1B.

Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss.

This content is not approved for use in Ohio or New Jersey.

Contact us
Contact us
Back to Top