The LGT Endowment allocates over 50% to alternative asset classes, including more than 20% to private equity. Antonio believes that the opportunity set in private markets is much larger than in the public sector, given that an increasing number of companies remain private today. In this context, he highlights the importance of taking a long-term view: if a market or asset class becomes overcrowded and pricing no longer makes sense, the long-term investor can simply wait.

Antonio also points to LGT Capital Partners’ role as a principal investor, noting that each investment decision taken by the firm is implemented in the same way for clients, the Princely Family of Liechtenstein and LGT employees who co-invest in the strategy. He considers this to be particularly important in volatile market environments as it reinforces the long-term mindset.

Antonio also emphasizes the importance of liquidity management. The team’s efforts to find the right liquidity framework for the strategy have been tested multiple times in real crises. He considers client education to be equally relevant: endowment style strategies are different to high-frequency vehicles such as ETFs and require a partnership with investors who understand that true alternative returns are generated through patience, not daily trading.

Read the article (behind paywall) here.