Moonfare presents its top ten trends for 2023, highlighting the challenges and opportunities for private market investors as they navigate a year of global economic uncertainty and heightened competitiveness in fundraising. New focus is on value-oriented strategies and operational improvements for success.
2023 is a year of both challenges and opportunities for private market investors. Despite the global economic uncertainty, private markets remain attractive, but fundraising will become more competitive.
Value-oriented strategies such as buyouts, infrastructure, real estate, secondaries, and private credit are likely to benefit in this challenging environment. Higher interest rates will continue to influence valuations and debt quantum in private equity deals, making operational improvements crucial to generating strong returns.
Secondary strategies may also gain from the current volatility in public markets and increased liquidity needs among institutional investors. Although investments and exits may be more muted in 2023, there will be buying opportunities for distressed investing specialists and firms seeking to grow portfolio companies through add-ons.
Get ready for a year of careful balancing, as Moonfare presents its top ten trends for 2023.
- Private markets remain in favour, but fundraising will become more challenging
- Higher interest rates will change the rules of the game
- Operational expertise will come to the fore
- Private credit will fill the void left by banks – again
- Larger, more established managers will continue to attract funding
- Larger deals will be down; add-ons will be up
- Distressed opportunities will emerge
- Lower valuations will persist, creating attractive acquisition opportunities
- Utilities and energy will benefit from tailwinds; technology investing will need a long-term perspective
- Secondary buyouts will be the main exit route
Full Story: HERE (Moonfare)
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