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Laxman Pai, Opalesque Asia: Global institutional investors believe private markets are more resilient than their public market counterparts, especially in times of heightened short-term uncertainty and risk, revealed a study.
According to the annual Global Investor Survey for 2023 by Adams Street Partners, over the long term, 86% of investors expect private markets to outperform public markets due to their focus on innovative, high-growth companies and sectors.
Respondents identified inflation, rising interest rates, and geopolitical risk among their top investment concerns, said the report by the private markets investment firm with over $52 billion of assets under management.
26% of respondents ranked North America first as the region they most favor for investment opportunities, followed by China (22%) and Europe (18%). Despite market fluctuations, 40% of investors ranked technology and healthcare as the sectors most likely to create the best investment opportunities in 2023, up from 35% last year.
Private credit is identified by 30% of respondents as one of the three best investment opportunities in 2023, up from 23% last year. Rising interest rates are boosting returns while increased lender protections have reduced risk, according to investors.
Investors are also bullish on venture capital, with 33% rating it as a prime opportunity, compared to 28% in 2022, said the report.
Meanwhile, investors are more cautious about adding new managers, with 60% s...................... To view our full article Click here
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