The past decade has witnessed a remarkable period of stable growth and historically low interest rates. During this time, investors were able to ride the wave of private equity investment, seemingly without worrying about liquidity, portfolio construction and manager selection. However, a recent 2023 outlook report by Franklin Templeton suggests this era of prosperity might have shortchanged quality assessment, leading some industries to experience what can only be described as a phase of “zero gravity” in terms of their valuations. This resulted in lower-tier companies being valued at astonishingly lofty levels, mirroring the valuations typically reserved for their top-tier counterparts.

Fast-forward to today, and we find ourselves amid a shifting landscape. As the investment horizon becomes increasingly complex, astute investors are beginning to clutch their capital more tightly. This newfound cautiousness stems from a growing need to reevaluate the private equity lands