Near-term opportunities and long-term trends

After the correction, we assess those areas that we believe might benefit over the coming months – and the megatrends set to define the years to come.

2022 was a challenging year for private markets, and 2023 offered little respite. After a long period of growth, the pace of new allocations dragged, thanks to higher interest rates and denominator effects (when private market weightings rise on the back of corrections in public market prices).

We also saw wide bid-offer spreads in the underlying investment markets and low levels of transactional activity, limiting liquidity. One of the bright spots was private credit, where rate increases led to some of the highest expected returns since before the global financial crisis.