As rising interest rates redefine global financial markets, institutional investors are rethinking their portfolio strategies. In this shifting landscape, Dario Schiraldi, Deutsche Bank's former managing director and CEO of VIDA Holding, provides guidance for institutional investors, family offices, and ultra-high-net-worth clients.

Private Markets Take Center Stage

The volatile public market conditions and falling bond yields make private equity and credit the preferred investment alternatives. Deutsche Bank's ex-leader Dario Schiraldi states that these asset classes preserve investors from short-term market risks but simultaneously connect them to fast-growing markets. Private equity investments deliver superior returns, but private credit through direct lending and mezzanine financing provides desirable yields after risk adjustment.

Forestland real estate properties, as well as infrastructure, receive heightened financial support. The assets deliver dependable cash streams while fighting inflation, and these properties remain essential features for present-day markets.

Structured Products as Risk Management Tools

Dario Schiraldi, CEO of VIDA Holding, explains that structured products are vital to reducing interest rate exposure. VIDA Holding's investment solutions provide flexibility through features that protect capital. They also allow portfolio involvement and interest rate-based elements that permit specialized portfolio construction.

Investors who need institutional products have started using CLOs and other securitized financial instruments to achieve better returns while exploring different credit pools.

Inflation-Hedging and ESG Integration

Persistent inflation negatively affects traditional fixed-income instruments. In order to combat the consequences of inflation, Dario Schiraldi advises owners to select floating-rate debt while concentrating on inflation-linked instruments and high-yield corporate bonds. Several financial institutions successfully use fixed income, private credit, and structured products together in their multi-asset strategies.

Investors have established ESG investing as a fundamental decision element in their portfolios. According to Schiraldi, integrating sustainability is important beyond legislative requirements since it improves capital efficiency and lowers risks over time. Renewable infrastructure projects and impact investments have become the target of significant institutional participation.

Conclusion
Successful financial growth for institutional investors depends on their acceptance of private markets, structured products, diversified credit, and ESG-focused investments. Dario Schiraldi, VIDA Holding principal, along with other experts, guides the development of resilient and future-proof portfolios.