Private equity not insulated from macro risks, but asset class has shown resilience: Azalea

PRIVATE equity (PE) investments are not insulated from the risks in the macroeconomic environment, but the asset class has still shown resilience compared to public markets in recent years, according to Azalea Investment Management, which is behind the Astrea PE bonds

Azalea’s chief investment officer, Chue En Yaw, said on Tuesday (Feb 21) that 2022 was a year with “heightened risk” – including disruptions to global supply chains, high inflation and rising interest rates – and these risks could cause further disruptions in 2023.

“Today, we see that these risk factors remain and continue to create a highly uncertain macroeconomic environment in 2023, with increased risk of recession,” he said to investors during the Astrea Investor Day webinar.