The resilience of private markets is set to be tested in the new year as short-term woes permeate the space, but industry experts are still seeing long-term opportunities.
In the midst of higher debt financing costs, a reduction in liquidity and incoming recessions in the US and Europe, private equity — the largest asset class by assets under management within the private markets space — is facing a fresh set of challenges. "Private markets have been very hot for a number of years, with private equity being all the rage. This led to a lot of money flowing into the sector and has likely resulted in some overvaluation," said James Yardley, senior research analyst at Chelsea Financial Services. "With the easy money now being withdrawn and financing now mu...
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