What is Real Assets?
Real assets are physical or tangible investments — including real estate, infrastructure, natural resources, and commodities — that provide inflation protection and stable income. They are a core allocation for many institutional LPs.
Real assets funds invest in physical assets that have intrinsic value: real estate (offices, apartments, logistics), infrastructure (toll roads, airports, energy grids), timberland, agriculture, and natural resources. Their cash flows are often contractual, long-duration, and inflation-linked.
For LPs, real assets complement equity strategies by providing portfolio diversification, income, and a hedge against inflation. Sovereign wealth funds, pension funds, and endowments are the dominant allocators to this asset class.