Swiss private bank Union Bancaire Privée has released its “Private Markets Outlook 2024” outlining how it sees 2024 as a year in transition for private markets.
Rising interest rates have disrupted risk distribution in public and private markets, ushering in a new era distinct from the previous decade of suppressed risks and ample liquidity due to the “Fed put.”
This shift demands a hands-on approach, especially in private equity, requiring stringent cash management in portfolio companies, while buyout investors may face challenges during exits. Private debt managers should prepare for potential loan foreclosures, while real estate investors should pivot towards value-add strategies, emphasizing asset repositioning and value extraction.
Private equity: A discerning approach is required, favoring the secondary market as a prime opportunity due to structural factors, and relying on managers' value creation abilities rather than reso
