Valuations and active ownership are keys to success in private markets

PRIVATE markets, including private debt and equity, are expected to remain resilient over the next decade, said Partners Group chairman Steffen Meister, thanks to their growing role in financing the real economy.

But success for investors such as the Partners Groups will hinge on their ability to invest in assets at lower-than-market valuations and to assert their influence as active owners to achieve transformational value.

Meister, who was briefly in Singapore last month, said: “If you apply a public-market strategy in private markets, meaning you just have the board and are a relatively passive shareholder, then I don’t think you’ll have much outperformance. Your biggest good as a player in private markets isn’t liquidity in sales. The biggest good is your governance because you are a single shareholder.