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Bailey McCann, Opalesque New York: 2024 has been a hard year for investment forecasting. Many asset managers expected this year to be a rebound year from 2023's slow M&A and high interest rates. However, that took longer than expected. But as the fourth quarter gets underway, Schroders says positive trends in the data are starting to emerge. The firm recently released its fourth quarter outlook and is cautiously optimistic.
"As we enter Q4 2024, private markets reverting to
pre-pandemic levels in terms of fundraising, investment
activity and valuations has continued, creating a favourable
capital demand/supply balance for new investments.
We expect the recent reduction of policy rates by central
banks in the US and Europe, anticipation of further interest
rate reductions and the recent stimulus measures in China
to provide tailwinds to the global economy, and by extension
private market investments globally. We expect this to
benefit private equity, real estate and infrastructure equity
investments, supported by declining lending rates. It may also
be advantageous for debt investments as default rates, which
have remained below long-term averages, are expected to
remain muted," the outlook says.
Nils Rode, CIO at Schroders Capital writes that 2025 could be a positive year for real estate investments in Europe and adds that the advent of AI could be a boon for venture capital investors.
Now that some central banks have started cutting rates, the r...................... To view our full article Click here
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