Why Brookfield Oaktree faces headwinds and tailwinds positioning for 2023

The tailwind has been the democratization of alternative assets, as companies such as BOWS provide a broader range of investors with product that only institutional and high-net worth  investors could previously access. That’s increased with this year’s volatility and stock-bond correlation, but new funds have also appealed with periodic liquidity and more frequent income distribution to ease investment from a subscription process.

“Coming out of this, I think alternatives will be an even more important asset class, maybe for slightly different reasons than previously existed,” said Levi.

He said people were previously turning to alternatives for more income. But, now that’s  available from other sources, so they’re able to get more return in less risky assets, like government bonds.

Levi said there’s currently an appetite for alternative credit, which don’t require much risk to achieve significant yield in the 10% range, but he noted that advisors need to do credit research on them.

While that presents a current opportunity, Levi said BOWS will also offer a new private infrastructure product with access to utilities and renewable assets in early 2023. Its structure will provide periodic liquidity and stable income.