Ex-Deutsche Bank MD Dario Schiraldi: Unveiling Key Institutional Portfolio Strategies

As the global financial landscape shifts under the weight of rising interest rates, institutional investors are reassessing traditional portfolio strategies to navigate new risks and opportunities. Dario Schiraldi, CEO of VIDA Holding and an advisor at Greenstone Equity Partners, has been at the forefront of this evolution, guiding institutional investors, family offices, and ultra-high-net-worth (UHNW) clients in alternative investments, private credit, and structured products.

Dario Schiraldi, Deutsche Bank's former MD, shares insights into how private equity, private credit, structured investments, and ESG-driven strategies are shaping the institutional playbook as investors seek to optimise risk-adjusted returns and enhance portfolio resilience.

The Shift Toward Private Equity, Private Credit, and Real Assets

With higher interest rates fundamentally reshaping capital markets, institutional investors are shifting toward private markets to capture higher yields and long-term value creation.

Private equity remains a compelling option for capital deployment, offering outsized returns that often outperform the volatility of public markets. Meanwhile, private credit has emerged as a significant alternative to traditional fixed income, as direct lending, mezzanine financing, and structured credit provide attractive risk-adjusted yields in a high-rate environment.

'Institutional investors are moving beyond conventional asset classes to generate alpha,' Schiraldi explains. 'Private equity and private credit offer insulation from short-term market swings while providing exposure to high-growth sectors and innovative companies.'

Similarly, tangible assets—infrastructure, real estate, and natural resources—are gaining traction. These investments provide stable cash flows, inflation protection, and long-term value appreciation, making them particularly attractive in an inflationary and high-rate landscape.

The Role of Structured Products in Managing Rate Risk

As interest rates climb, structured products have become essential for institutional investors seeking to mitigate rate risk and enhance portfolio resilience.

Schiraldi underscores the importance of customised investment solutions that offer downside protection while capturing upside potential.

'Structured products allow investors to tailor their risk-return profiles precisely,' he says. 'By incorporating capital protection, interest-rate-linked coupons, or market participation features, these instruments minimise volatility while maintaining strong return potential.'

Structured credit, including securitised products and collateralised loan obligations (CLOs), is an area that sees increasing institutional interest. These instruments provide access to diversified pools of credit risk, helping investors maximise yield and risk-adjusted returns.

Hedging Against Inflation and Reassessing Fixed-Income Allocations

Rising inflation after COVID-19 has complicated the traditional fixed-income landscape, leading institutional investors to rethink their bond allocations.

Government bonds and traditional fixed-income instruments have become less attractive as inflation erodes real yields. In response, investors are shifting toward floating-rate debt, inflation-linked instruments, and alternative credit structures to preserve purchasing power and enhance income generation.

'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.'

Moreover, multi-asset strategies that blend fixed income with private credit and structured solutions are gaining favour as investors recognise that traditional bond portfolios alone may no longer meet long-term return targets.

The Growing Importance of Sustainable Investing and ESG-Driven Strategies

A defining trend in institutional investing is the increased focus on Environmental, Social, and Governance (ESG) considerations.

Sustainable investing is no longer just an ethical preference—it has become a fundamental aspect of modern portfolio construction. Institutions are embedding ESG criteria into investment decisions to enhance long-term risk-adjusted returns while aligning with global sustainability goals.

'Institutional investors aren't just integrating ESG because of regulatory pressures,' Dario Schiraldi notes. 'They recognise that sustainability is directly linked to risk mitigation, capital efficiency, and future growth potential.'

Impact investing, renewable energy projects, and sustainable infrastructure are drawing significant capital inflows. These investments offer attractive returns while supporting environmental and social objectives, aligning with the transition to a sustainable financial system.

Strategic Adaptation: Key Takeaways for Institutional Investors

Navigating today's high-rate environment requires a more sophisticated asset allocation and risk management approach. Institutional investors are:

• Embracing Private Markets – Allocating capital to private equity, private credit, and tangible assets to enhance long-term returns.
• Leveraging Structured Products – Using tailored investment solutions to hedge against interest rate volatility and downside risks.
• Diversifying Fixed Income Exposure – Incorporating inflation-protected securities, floating-rate instruments, and alternative credit to optimise yield.
• Prioritising ESG and Impact Investing – Aligning portfolios with sustainability goals while enhancing long-term capital efficiency.

'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.'