In a market where having an information advantage over peers can lead to millions of dollars in outperformance, access to the insights and opinions of consultants serving the institutional investor community is invaluable.
Through their research efforts and due diligence work with fund managers and investors of all shapes and sizes, consultants are some of the most knowledgeable and well-informed market participants. Most investors generally rely on just one consultant for any given asset class, but one way these investors can attain a true competitive advantage over their peers is by knowing what every consultant thinks about the market.
While we can’t fit every consultant outlook into one blog post, here are insights from three top consultants on private equity landscape in 2022.
Source: Themes and Opportunities 2022: Metamorphosis
- Allocations to private equity, specifically specialist venture capital firms investing in fintech platforms, can potentially allow investors to potentially benefit from exposure to disruptive technological developments.
- Private debt and hedge fund platforms can also offer access to new loans coming from fintech platforms.
- Investment grade private debt funds aim to compete large, high quality corporate and commercial real estate loans away from banks with the promise of quicker, more flexible execution while reaping a spread to public markets.
Source: 2022 Capital Market Assumptions
- The private equity market in aggregate is driven by many of the same economic factors as public equity markets. Buyout valuations appear reasonable while venture/growth equity valuations are high.
- Consequently, the private equity performance expectations did not change relative to where they were last year.
- We see tremendous disparity between the best-and-worst-performing private equity managers.
- The ability to select skillful managers could result in realized returns significantly greater than projected here.
- 2022 private equity return projection: 8.00%
Source: San Bernardino County ERA 2022 Private Equity Pacing Plan
Insights in focus
Whether your firm relies on an in-house investment team or a consultant, you can still benefit from having the big-picture view of the global marketplace and understanding where others are seeing investment opportunities.
That is exactly what eVestment Market Lens provides.