VEnture CAPITAL IN ASSET ALLOCATION
Recently it has become rather difficult to generate rewarding returns on investment in traditional financial markets. The current investment landscape is characterized by an all-time low interest rate on reliable government bonds, increasing inflation and high volatility, not to mention a deep confidence crisis in the banking and financial products sector.
In consequence, many investors increasingly rely on alternative investments in so-called "real assets". These include entrepreneurial assets such as private equity and venture capital funds as well as direct company investments. Beyond achieving higher risk-adjusted returns, entrepreneurial assets have a low correlation with traditional assets and can provide inflation protection.
ECB; Eurostat
EVCA; Markt-daten.de; eu.spindices.com