As investors seek to navigate an unprecedented market regime, private market investments are well suited to the task, according to BlackRock’s Alternative Investors 2022 Private Markets Outlook.
Private market risk premia are still attractive, in the firm’s view. The firm expects megatrends (notably digitization and decarbonization) will benefit investments of this vintage across asset classes, but selection is increasingly important. Convergence between public and private markets is leading to new opportunities as well as challenges for investors unable to provide both types of finance.
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