Explore how private assets likely performed during the recent market selloff and what it means for investors navigating turbulent times.

Key Points

  • We seek to analyse how Private Assets (PA) likely behaved during the recent market selloff, based on two complementary approaches: liquid proxies of PA returns and PA’ sensitivities to macroeconomic trends.

  • Both models suggest that PA is likely to demonstrate reasonable resilience.

  • However, the potential decline in corporate activity is a significant wildcard,which could undermine the early recovery observed in private deals.

  • Thus far, since the selloff was primarily driven by a rebalancing of global allocations, we do not anticipate a significant reweighting impact on investors’ PA holdings.

  • Overall, we expect that PA will once again showcase their diversification benefits.