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Laxman Pai, Opalesque Asia:

Despite macroeconomic challenges, 35% of investors plan to increase their private capital investments, based upon their view on where we are in the equity market cycle, said a study.

According to Preqin's Investor Outlook: Alternative Assets H1 2023, 18% of respondents reported that they aim to reduce their private capital investments, with the remainder (46%) planning no change.

The survey presents the responses from investors across the globe. The report breaks down global investor sentiment into the following categories: private equity, venture capital, private debt, hedge funds, real estate, infrastructure, and natural resources.

The report found that the exit environment has become the key concern for venture capital (VC) investors, with 75% of survey respondents stating this to be a challenge to return generation over 2023, up from 25% surveyed in the same period one year earlier.

Looking at VC specifically, rising interest rates, sticky inflation, and negative market sentiment have prompted expectations of more downside risk to asset valuations. 74% of survey respondents feel that venture capital assets were overvalued, an increase from 69% a year earlier.

Meanwhile, more investors consider a correction to be imminent, with the proportion of respondents who think this nearly doubling - from 18% in the previous year to 35% in November 2022.

While asset valuations remain one of the key challenges for 52% of inve......................

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