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Historically, many of the best private equity vintage years occur after a correction in valuations. As we see valuations reset in the buyout market, investors should have an attractive entry point into private equity investments.
Distressed private credit and opportunistic real estate funds also present a compelling opportunity for investors in our view, as companies and property owners face higher borrowing costs and weaker operating fundamentals.
We also believe macro hedge funds will continue to post strong returns in 2023, given the uncertainty around interest rates, inflation, economic growth, and geopolitics.
And lastly, investors have the potential to lock in more attractive structured investment terms, as we anticipate elevated short-term rates and volatility to persist in the first half of the year.
While we patiently wait for a market rebound, we see a silver lining for alternative investments in the current market backdrop – and our view is now is the time to commit.
Head of Investment Products
MONTHLY MARKET ROUNDUP
WEEKLY MARKET PULSE
The 2023 market outlooks are out and most everyone is bearish, anticipating weak growth to start the year. But amid the gloom, we see a path for risk assets to recover. Discover our four reasons to be optimistic about deploying capital into public and private market opportunities throughout this year in Chief Investment Strategist ‘s .
CHART OF THE MONTH
Past cycles have shown that recessionary periods offer an opportunity for private equity managers to acquire strong businesses at lower valuations. As valuations begin to reset in the buyout market, we believe 2023 is positioned to become one of the better vintages that we have seen in recent years, and an attractive time to deploy capital.
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