Private bets shield big investors from inflation, spiraling interest rates

A shift toward private markets is cushioning many of the world’s largest investors from the wreckage wrought by runaway inflation and spiraling interest rates.
 

The big question now looming over giants from China’s $1.2 trillion sovereign wealth fund to California’s public pension, the largest in the US, is how long those private bets will remain insulated as the economic outlook darkens.

The ten biggest global funds that disclose holdings in non-public markets doubled their combined weightings to assets such as private equity and credit, real estate, infrastructure and hedge funds to about a quarter of their portfolios since the global