Stress and sectors
When Solotar was asked to describe the type of business sectors that appeal to her investment colleagues, she gave examples such as e-commerce and firms benefiting from the digitalisation trend.
“The firm has repositioned our portfolio to a rising rate environment to more growth-orientated companies….they tend to have less leverage and have [good] top-line potential,” she said. In setting up the private markets funds, Solotar said that Blackstone assumes a possible higher interest rate environment.
Given how local regulators are trying to widen investor access outside traditional assets, Solotar said that one of the “most exciting” markets is Japan. Hong Kong and Singapore are also important sources of inflows into its funds, she added.