Private Markets
The value of alternative investments
In the financial centres of the world there is a consensus that inflation has peaked, but its persistence remains an issue. Here too, there is widespread agreement that interest rates will go down over the course of the year. The macroeconomic environment is pointing towards a soft landing globally, accompanied by otherwise sluggish growth in 2024.
We are seeing the first positive signs of M&A activity and IPOs in North America, and recently also in Frankfurt, which suggests that markets will revive in the current year. This cautiously optimistic mindset is underlaid by a nagging apprehension that geopolitical tensions might trigger “tail risks” over the course of the year, causing volatility and market turbulence.
Investors who take a longer-term perspective can see that it is precisely periods of uncertainty that offer great opportunities. The market for alternative investments, which includes the two segments private equity and private debt, regularly demonstrates that with the benefit of hindsight, crisis years turn out to be the best vintage years for investors.
Dr Matthias Reicherter discusses how and why institutional investors are getting more interested in private equity investments, from funds of funds to co-investment structures, in his guest article for the Börsen-Zeitung, which was published on 06/03/2024.
