The Business Times
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Institutional money staying invested in private markets, but say valuations need to adjust: survey

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Raphael Lim

Raphael Lim

Published Mon, Feb 6, 2023 · 07:00 PM
    • One of the biggest concerns was that valuations have not yet adjusted sufficiently downwards. This view was more widely held by traditional asset managers, as well as asset owners and insurers.
    • Eric Chng, Asia-Pacific head of alternatives segment at State Street.
    • One of the biggest concerns was that valuations have not yet adjusted sufficiently downwards. This view was more widely held by traditional asset managers, as well as asset owners and insurers. PHOTO: PIXABAY
    • Eric Chng, Asia-Pacific head of alternatives segment at State Street. PHOTO: STATE STREET

    INSTITUTIONAL investors believe private equity (PE) valuations need to adjust to market conditions, with half the respondents in a survey citing this as a major concern when investing in private markets.

    Respondents to the State Street private markets study also acknowledged rising interest rates would reduce the attractiveness of the highly leveraged asset class, but the majority also expect tough times to bring about buying opportunities.

    Nearly 70 per cent of the 480 institutional investors polled – including traditional asset managers, private market managers, insurance companies and asset owners – are planning to stick to their target allocations in private markets despite headwinds.

    Private equityState Street

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