Private assets continue to attract capital as investors seek better returns, according to Schroder Investment Management. The firm believes private markets can continue to deliver but will increasingly rely on hard-to-access areas and specialist skills.
The recent vaccine breakthroughs are allowing investors to cast their attention beyond the current pandemic to the long-term opportunities and prospects for private markets.
Investors still plan to allocate more capital to private markets next year. Indeed, during the next five years, private markets are expected to almost double again in size.
As 2021 begins, there is room for this expansion. The return generation that attracts investors to private markets will persist, albeit increasingly driven by areas of private markets, which are harder to access and demand in-depth expertise.
Impact investment
Philipp Müller, CEO, BlueOrchard, writes: Emerging markets ultimately fared better than many