Jeff Diehl, Managing Partner & Head of Investments, joined a webinar programmed by Economist Impact and supported by Adams Street Partners to discuss the near and longer term outlook for private markets. Participants discussed how investors are becoming more discerning, shifting from a growth-at-all-costs mindset to one where they seek out resilient companies with pricing power, significant share of large and growing markets, good revenue visibility, and a path to profitability. Panelists examined long-term opportunities in technology and healthcare for private equity investors, and why short-term uncertainty caused by risks including inflation, rising interest rates and geopolitical tension may create exceptional opportunities in private credit, secondaries, co-investments, and small and mid-size buyouts.
Participants also included Gregory J. Turk, Director of Investments at the Teachers’ Retirement System of the State of Illinois, and Greg Brown, Research Director at the UNC Institute for Private Capital. The session was moderated by Melanie Noronha, Senior Manager, Policy & Insights, at Economist Impact.
2:45: Positive long-term trends for private markets; macroeconomic impact on deal flow, valuations
8:35: How higher rates, volatility can create opportunities in private credit, buyouts and secondaries
17:10: Is the denominator effect a myth? The importance of consistent allocations
22:45: Regional thinking: North American focus, Asia growth outlook, the dynamics of reshoring and deglobalization
34:20: Innovation and the long-term potential for sectors experiencing dislocation, growth and change: technology, healthcare
40:45: The case for early stage venture capital, growth equity, small and mid-market buyouts
44:30: ESG and sustainable finance – data, ratings, scoring deficits in private markets create investor uncertainty and concerns about reputational risks
51:00: Optimal diversification: Public and private asset mix, the importance of steady deployment