Higher for longer: Private markets may be due a reckoning after a decade of stellar growth

Steeper debt costs could weigh on returns

clock • 5 min read

A higher for longer interest rates environment is poised to weigh heavily on the growth and performance of the private markets industry after a decade of favourable market conditions, but this backdrop may also create pockets of opportunity.

In the first instalment of Investment Week's 'Higher for longer' series, we examine the impact higher interest rates have already had on several corners of the market and how this environment could continue to affect different asset classes. The number of private funds has tripled within the private market sector over the past decade to over 100,000 vehicles, and assets under management have swelled to over $13trn.  The investor base for these types of portfolios has also evolved as assets such as private equity, private debt, infrastructure and real estate are no longer just an optio...

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