Investors Fret Over High Valuations of Private Companies

26 May

Investors Fret Over High Valuations of Private Companies

The Financial Times highlighted new trends in the private markets business with insights from the 2019 eVestment Private Markets Due Diligence Survey, released in May.

Investors have enthusiastically piled into private assets over the past decade, as ultra-low interest rates spurred them to hunt for returns in asset classes beyond listed stocks and bonds.

They have ploughed money into areas such as real estate, infrastructure and investing in private companies. This wall of cash has forced them to pay record multiples for assets as they come under pressure to deploy capital.