CHICAGO, IL – March 5, 2024 – Adams Street Partners, LLC, a leading private markets investment firm with over $58 billion of assets under management, today released its fourth annual Global Investor Survey for 2024. For the fourth consecutive year, respondents believe that private markets’ superior ability to navigate short-term volatility and economic uncertainty make them more resilient than their public market counterparts.
Specifically, nearly 90% of respondents anticipate that private markets will continue to outperform their public market equivalents, with two-thirds of respondents expecting to increase their private market deployments in 2024.
Respondents confirmed their belief that private markets managers with scale, and a platform that crosses multiple strategies, are best placed to take advantage of investment opportunities in technology, healthcare and other sectors benefiting from change, dislocation, and growth.
While 39% of respondents view rising interest rates and inflation as the biggest challenges in private markets, that is significantly below the 55% level in last year’s survey. There is also growing consensus that rates have peaked, with 46% strongly agreeing that they will be lower at the end of 2024 than at the end of 2023.
Survey results also concluded that geopolitical risk is a key concern for investors, with 55% of respondents citing the US political climate as the biggest threat to global economic stability and growth.
Jeff Diehl, Managing Partner & Head of Investments at Adams Street, said, “Interest rates appear to have peaked and stabilized and may modestly decline this year, which should result in a pickup in deal activity and liquidity. Our experience over more than 50 years tells us that great companies can succeed in any interest rate environment, so our focus is on getting investment exposure to some of the best private companies.
Key findings from the survey of institutional limited partners in private markets globally include:
The report, “Navigating Private Markets in 2024: Opportunity Knocks as Change Accelerates,” surveyed 100 institutional investors in the US, Europe, and APAC. They were surveyed on a variety of topics over six weeks leading into 2024.
Adams Street Partners is a global private markets investment manager with investments in more than 30 countries across five continents. The firm is 100% employee-owned and manages $58 billion in assets under management. Adams Street strives to generate actionable investment insights across market cycles by drawing on over 50 years of private markets experience, proprietary intelligence, and trusted relationships. Adams Street has offices in Austin, Beijing, Boston, Chicago, London, Menlo Park, Munich, New York, Seoul, Singapore, Sydney, and Tokyo. Visit www.adamsstreetpartners.com
Important Considerations: This information is provided for educational purposes only and is not investment advice or an offer or sale of any security or investment product or investment advice. Offerings are made only pursuant to a private offering memorandum containing important information. Statements are made as of the date hereof unless noted otherwise, and there is no implication that the information contained herein is correct as of any time subsequent to such date. All information has been obtained from sources believed to be reliable and current, but accuracy cannot be guaranteed. References herein to specific sectors, or investments are not to be considered a recommendation or solicitation for any such sector or investment. Past performance is not a guarantee of future results. Projections or forward-looking statements contained herein are only estimates of future results or events that are based upon assumptions made at the time such projections or statements were developed or made. There can be no assurance that the results set forth in the projections or the events predicted will be attained, and actual results may be significantly different from the projections. Also, general economic factors, which are not predictable, can have a material impact on the reliability of projections or forward-looking statements. Adams Street Partners, LLC is a US investment adviser governed by applicable US laws, which differ from laws in other jurisdictions.
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