As interest rates rise and the global economy shifts, large investors are adjusting their strategies on how to invest their money. Dario Schiraldi, Principal of VIDA Holding and an advisor at Greenstone Equity Partners, is helping lead this change. With years of experience, including his time as a Managing Director at Deutsche Bank, Schiraldi helps big investors, wealthy families, and top-tier clients make smarter investment choices—especially in areas like private credit, alternative investments, and structured products.
The Shift Toward Private Equity, Private Credit, and Real Asset
Rising interest rates have completely shifted how investors play the game. Since traditional bonds and public markets aren’t giving the same returns as before, big investors are now looking to private markets to get better results.
Private equity is a good choice because it can give higher returns and isn’t as affected by the daily ups and downs of the stock market. Private credit—such as direct loans and structured lending—is also appealing right now because it offers better returns in today’s market conditions.
"Institutional investors are moving beyond conventional asset classes to generate alpha," Dario Schiraldi explains. "Private equity and private credit offer insulation from short-term market swings while providing exposure to high-growth sectors and innovative companies."
Investors are also putting their money into physical assets—like real estate, infrastructure, and natural resources—that they can see and touch. These kinds of investments help guard against inflation and offer stable income and value over the long run.
The Role of Structured Products in Managing Rate Risk
As interest rates continue to rise, structured products are becoming an important tool for investors. They help investors lower risk while still aiming for good returns.
"Structured products allow investors to tailor their risk-return profiles precisely," Dario Schiraldi, Deutsche Bank's former MD says. "By incorporating capital protection, interest-rate-linked coupons, or market participation features, these instruments minimize volatility while maintaining strong return potential."
Structured credit, such as CLOs (collateralized loan obligations), is particularly attractive. These products give investors access to different types of credit, while helping to manage risks and increase potential returns.
Hedging Against Inflation and Reassessing Fixed-Income Allocations
With inflation going up after COVID-19, traditional bonds aren't giving the same returns as before. As inflation reduces returns, investors are looking for other options. They’re turning to floating-rate loans, inflation-protected bonds, and high-yield credit to stay on top.
"In a high-inflation environment, maintaining real returns is paramount," Dario Schiraldi, Deutsche Bank's Ex-Manager explains. "Investors are increasingly turning to TIPS, floating-rate loans, and high-yield corporate debt to generate inflation-adjusted income."
Institutional Investors are also mixing different types of assets, like bonds, private credit, and structured investments, to meet their return targets.
The Growing Importance of Sustainable Investing and ESG-Driven Strategies
Sustainability is no longer just an afterthought—it’s now a key focus of investment strategy.
"Institutional investors aren't just integrating ESG because of regulatory pressures," Dario Schiraldi, VIDA Holding Principal notes. "They recognize that sustainability is directly linked to risk mitigation, capital efficiency, and future growth potential."
Investors are putting more money into renewable energy, eco-friendly infrastructure, and projects that help the environment or support communities. These kinds of investments help make the world better and can also bring good profits.
Strategic Adaptation: Key Takeaways for Institutional Investors
To succeed in today’s market, big investors are being more careful and adaptable. They are:
- Turning to Private Markets – Putting money into private equity, private loans, and real assets like real estate to aim for stronger long-term growth.
- Using Structured Products – Choosing tailored investments that help protect their money from interest rate changes and potential losses.
- Mixing Up Fixed Income – Including bonds that adjust with inflation and interest rates to keep earning steady income.
- Focusing on ESG and Impact Investing – Backing eco-friendly and socially responsible projects while making smart use of investment capital.
"Strategic adaptation is crucial in today's financial landscape," Dario Schiraldi, Deutsche Bank's former leader, concludes. "Institutional investors who proactively embrace these shifts will be best positioned to achieve sustainable growth and resilience in the years ahead."
