LPs keep one eye on the horizon amid headwinds
Investors remain bullish on the long-term outlook for private versus public markets investing in the face of high interest rates and inflationary pressures, according to PEI’s LP Perspectives 2024 Study.
High interest rates have been an ongoing pain point for private markets throughout 2023 and continue to be a source of worry for investors over the year ahead. According to Private Equity International’s LP Perspectives 2024 Study, 66 percent of respondents expect interest rate hikes to be one of the top three factors impacting the performance of their private markets portfolios over the next 12 months, outweighing fears of recession in core markets (59 percent), high inflation (53 percent) and geopolitical uncertainty (32 percent).
There are some bright spots among the data. Appetite for private equity has improved slightly, with 31 percent of respondents intending to invest more capital in the asset class, up from 28 percent in the 2023 study...
Read the full story here on Private Equity International.