Falling valuations dull the shine of private assets, curb exit options

INVESTORS have flocked to private market assets this year, drawn by the relative resilience and superior returns of such investments over their public counterpart, but their appeal may be fading somewhat as valuations fall amid rising caution.

More broad-based adjustments across industries loom, according to market watchers who expect the most significant corrections to unfold in the venture capital (VC) funds space, specifically in relation to tech and growth companies.

Over the course of this year, public markets have seen big corrections – major equity indices from the United States’ S&P 500 to Hong Kong’s Hang Seng and Japan’s Nikkei 225 are down around 20 per cent.