Changes in private market investments have led to high-yielding assets, such as private equity gaining appeal, as interest rates and inflation dropped to unprecedented levels.
Two years into Covid-19, Russia’s invasion of Ukraine, and with a much more inflationary environment, the market is asking which investments can maintain its appeal. These topics were discussed at Societe Generale Securities Services (SGSS) annual investor summit held in Paris recently.
Yannick Oswald, partner at Mangrove Capital Partners, says: “Private markets have been one of the biggest winners of the last decade, with low-interest rates as one of the main drivers, 2022 seems like a new era. After two long Covid years, uncertainty continues to define the world, but for very different, albeit straightforward reasons.”
Price adjustments have not been uniformly distributed across asset classes, whether that be private equity, real estate, or private debt, which causes concern in the market.
“What we know is that 2021 was a banner year, with $1.2 trillion of new money flowing into private markets. It is too early to tell the impact of the correction, but it will depend on the asset class,” said Dominique Carrel-Billiard, head of real and alternative assets at the asset manager Amundi.
Funds Europe, in association with SGSS, reported on the European Investor Summit. Read more on digital currencies, private markets, and ESG in our report here.
@ 2022 funds europe
