Barwon Global Listed Private Equity Fund Update - June 2023

Welcome to Barwon's latest Global Listed Private Equity update for June 2023. The Fund has returned 16% calendar year to date. One of the key contributors has been the private equity buyout stocks. The Fund has substantially increased its weight to buyouts this year, and continues to stand out as offering compelling value. The disconnect between private asset and public market performance is most pronounced here. For our holdings - since the start of this rate rise cycle at the end of 2021, they've grown Net Asset Value by 13% on average. And despite the recent strong performance, their share prices are still down 10% from that same starting point to today. At an average discount to NAV of 30%, its still very attractive. The other key contributor to Fund performance has been the alternative asset managers. This may surprise some given the challenging fundraising environment. Most managers we've spoken to have tempered fundraising expectations for their upcoming funds. Private equity is particularly affected and the competition for dollars is intense. However, private credit and infrastructure strategies remain well supported. So the large established managers, with diversified global platforms held in our portfolio have generally outperformed the smaller, more concentrated ones.