Smart Business Magazine, January 2021

16 Smart Business January 2021 In a market affected like it is by the COVID 19 pandemic volatility is the norm rather than nuance When forces like this are at work all any investor can do is wade through these waters very carefully and look for opportunities and particularly opportunities that these conditions support says George Sullivan CEO of Equity Trust Company Over the past 10 years pricing in general for all asset classes has been rising steadily So some investors even prior to COVID were focused on alternative investments real estate private equity and private credit Since COVID Sullivan is seeing some passivity toward alternatives and that to him is a reflection of markets coming back up and pricing being high again There may not be as many opportunities as when pricing is down and its leveling the field between the two investment types But there are other advantages to alternative investments Hes says right now hes seeing a premium in real estate and private equity assets that are uncorrelated to the public market If the public markets systemically died that doesnt mean that real estate and private equity will he says So you get the benefit in good times of a little more alpha or return on those investment and in bad times much more of a hedge against the public market With all the shifts and uncertainty he says the fundamental question on investors minds right now is when conditions will improve For Sullivan thats the wrong question Instead they should ask where the opportunities are Really sophisticated investors will look at these times as the time to invest whereas the average investor is generally jumping out of the market both public and private Sullivan says So even though theres reason for caution really good investors make their hay in these kinds of times and I think youll continue to see that George Sullivan Finding opportunity in disruption DEALMAKERS Trends BY ADAM BURROUGHS aburroughs@ sbnonline com Smart Business Dealmakers is a monthly digital newsletter featuring the top business leaders in the Northeast Ohio M A scene Sign up today at www smartbusinessdealmakers com cleveland Sullivan spoke on the Smart Business Dealmakers Podcast about the state of investing and what the state of mind of high net worth individuals looking to capitalize during a time of disruption should be To listen to this and other Smart Business podcasts visit www smartbusinessdealmakers com podcast Really sophisticated investors will look at these times as the time to invest GEORGE SULLIVAN CEO EQUITY TRUST COMPANY