Private Markets and Persistent High Interest Rates: Challenges and Opportunities

June 20, 2024

In this new episode of The Wealth Enterprise Briefing, WE Family Offices Managing Partner Michael Zeuner and Senior Investment Manager Matt Farrell discuss an issue increasingly relevant to investors: the effect of prolonged higher interest rates on private investment markets.

Key topics Michael and Matt address include:

• The impact of higher interest rates on the present value of companies, particularly in venture capital and real estate.
• The challenges faced by buyout strategies due to increased debt costs and reduced deal attractiveness.
• The varied effects on different managers and sectors, emphasizing challenges and potential advantages.
• The importance of patience and long-term perspective for investors during periods of market volatility.

Listeners will discover how higher interest rates shape investment strategies, the comparative advantages of different private market sectors and the importance of maintaining a disciplined, long-term investment approach.

As always, if you have any questions, please do not hesitate to contact us.