As we look towards the new year, secular trends are occurring across global markets which will have profound impacts on the demand for private capital and for manager selection across private equity, venture capital, real estate, infrastructure as well as private credit strategies.
The COVID-19 pandemic only accelerated emergent trends promoting both regionalization and localization,1 two forces we see adding enormous opportunity for private market investment in 2023 and beyond. For example, substantial capital requirements and increased cost will be incurred to position more production strategically closer to consumption. In tandem, country of origin will be increasingly relevant to private market strategy development, especially as supply-side challenges are addressed via the private and public sectors. As such, we believe investors in private equity, venture capital, real assets (e.g., real estate and infrastructure), and private credit are positioned to take advantage with flexible strategies which are very much the domain of the local market. The result? A new world under development where the value of active ownership, local market expertise and global multi-asset relative value views will grow meaningfully.
