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.
