While pension & endowment funds recognize the importance of diversification by including private debt and real estate in their portfolios, retail investors have a difficult time accessing alternatives to stocks and bonds. Private debt and real estate may provide portfolio stability and offset the volatility in equity and fixed income markets.

Faced with a lower interest rate environment, investors are struggling to find yield that can beat inflation to produce real returns. Pension and endowment funds have been shifting from widely held traditional fixed income markets to private debt to enhance returns.