Flagging investor interest may make 2024 a fine vintage year for private markets

WEAKER sentiment has lowered asset valuations in some parts of the private markets, suggesting that now is a good time to invest. Experts caution, however, that because of the way private market funds call capital and invest it, a consistent allocation strategy works better than trying to time the market.

Much like a fine wine, a private equity investment improves over time and under a skilled hand, said Walter Zhang, head of private markets investor relations for Asia at Indosuez Wealth Management.

“Vintage is one of the key factors to assess in making the soundest decisions,” he added. “Funds across different vintages are exposed to different economic cycles with varying investment and exit environments, leading to fund performance dispersion across vintages.”