Union Bancaire Privée (UBP) has released its ‘Private Markets 2024 Outlook’ report, highlighting a transitional year ahead with significant shifts in private equity and other sectors.
The report emphasises a move from a passive to a more active investment approach and the importance of cash discipline, especially in venture capital.
According to UBP’s analysis, 2024 will reward specialised managers who can generate alpha in an environment of structural inefficiencies.
The report advises investors to be selective, focussing on opportunities uncorrelated with broader markets and adopting a diversified portfolio approach.
In private equity, UBP sees 2024 as a year rich in investment opportunities, particularly in the secondary market.
The focus, the report suggests, should be on LP-led transactions for diversified exposure. For private debt, UBP advises looking beyond traditional direct lending to find attractive returns and uncorrelated risk premia, with promising prospects in specialised lending, hybrid capital and structured financing.
The report also covers the private real estate sector, noting that 2024 will require strategic asset selection. Hospitality and alternative assets like student housing, logistics and data centres present notable opportunities. In infrastructure, the emphasis is on decarbonisation, recycling and digitalisation, with energy transition investments highlighted as particularly attractive.
UBP’s outlook for 2024 presents a nuanced view of the private markets, recognising both the challenges and opportunities in a potentially complex investment landscape. The report underscores the need for a strategic and selective approach to maximise potential returns in private markets.
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