Private Markets in Focus: Long-Term Impacts of Higher Interest Rates

June 10, 2024

While our past discussions have focused on forward-looking strategies in private markets amidst current capital market conditions, in our latest episode of The Wealth Enterprise Briefing, WE Family Offices Managing Partner Michael Zeuner and Senior Investment Manager Matt Farrell, CAIA®, take a reflective turn. Michael and Matt analyze the performance and trends of private investment vehicles over the past five years, focusing on the impact of prolonged higher interest rates on various asset classes, including private credit, venture capital, secondary markets and real estate.

Key takeaways from the episode include:

• Performance trends in private credit and real estate credit within private markets.
• Challenges in leveraged buyouts and the significance of vintage and asset class diversification.
• The current capital market landscape and an overview of private investment vehicles.
• Opportunities across asset classes and strategic expectations for investors.

Michael and Matt emphasize that while challenges exist, these should not deter investors from making future commitments. Instead, staying informed and strategically diversified can promote long-term success in private market investments.

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