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Amid an increasingly volatile macroeconomic and geopolitical landscape, the private equity (PE) sector faces mounting challenges across the deal lifecycle—from fundraising to deal execution and exits. In turn, PE sponsors are seeking strategies to extract increased value from portfolio companies beyond the traditional cost cutting exercises. One underutilized and effective strategy is to optimize a portfolio company’s cash flows to enhance overall business performance, create operational value, and unlock substantial returns.

Investing is challenging, even for the most seasoned investors, given the underlying emotions and mental biases inherent in human decision making. To help minimize the challenges around investing, successful investors have explicit investment processes and practices that are clearly outlined and consistently implemented. To ensure you are set up for success with your investment process, we provide guidance on how to avoid the five key investment pitfalls—including failing to exercise strong governance—that can steer you off course.

Fundamental equity long/short (ELS) strategies have faced challenges since the Global Financial Crisis in 2008, but the tide may be turning. The recent increase in cash yields and higher equity dispersion create a more favorable environment for the short book and will offer opportunities for managers to distinguish themselves. Moreover, with equity markets having experienced a massive rally over the last decade and trading at elevated valuations, it is prudent for investors to consider adding more defensive strategies like ELS to their portfolios.

Conventional investing is all about diversification and maximizing returns. While both of these are still fundamental, some investors also want to use their economic influence to drive meaningful change. As these investors make financial decisions informed by both heart and mind, traditional barriers between making money and making a difference are dissolving. That’s good news for young companies that are seeking "angel investors" for capital.

Opportunities have increased significantly in frontier markets debt as more countries have made a conscious effort to open their capital markets to international investors and currencies have become more fairly valued. As a result, the time may be the right for an allocation to frontier markets debt through a dedicated strategy. In this paper, we take a closer look at both the potential benefits a frontier debt portfolio can add to an investor’s portfolio, discuss our investment process, and explain how the risks inherent in this asset class can be handled.

Invoking emergency powers due to the stated “threat posed by illegal aliens and drugs,” President Trump implemented a 10% tariff on imports from China, a 25% tariff on imports from Mexico, and—perhaps most surprisingly—a 25% tariff on imports from Canada (except for Canadian energy imports that receive a 10% tariff). These tariffs are sending shockwaves through financial markets both in North America and around the globe as investors reevaluate their portfolio positioning and investment strategies. In the short-term, risks are heightened.