Are niche strategies the future?
I've heard more and more people point toward very niche asset classes/strategies as being the places to be in private markets. In several conversations people have pointed toward firms doing litigation funding, aviation, life settlements/longevity, specialty finance/lending, hybrid VC and venture debt, etc. as being the places to be for a long-term career given how competitive it has become for firms doing traditional buyout, growth equity, etc.
I guess I can see the appeal, as many of the funds playing in these spaces are fairly non-correlated (attracts institutional capital) and can put out some pretty solid returns, but what are everyone's thoughts on the best niches to be in as we look toward the next few years?
Not a professional in those sectors in general..but for personal experience, money is made mainly in niches. This rule of the thumb is valid not only for investing in companies, but also to some commodities, as well as the debt side (non performing and distressed loans, for instance). Due to the huge amount of debt out of there...I'll go with my last one thing on the list: having the ability to calculate PDs, LGDs and having strong, technical quant guys in an evergreen "sector" (aka debt) could be pivotal to make money. That's my personal opinion, could be a professional bias btw. Hope to hear your and other opinions too.
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