Why private markets are fast becoming the new "traditional asset class"

This asset class has tripled over the last 10 years to US$15 trillion... And there's no sign that will slow anytime soon.
Ally Selby

Livewire Markets

There's something enticing about private equity. Perhaps it's because we've seen some big private equity deals in recent years, taking many of our prized listed players private (like Sydney Airport, for example). 

It could also be that we've had some local success stories - and many fortunes made - off the back of soaring companies that don't need to go to public markets for capital, like Canva. 

More than likely, it's that private equity returns have beat public market returns over the past five, 10, 15 and 20 years. 

Whatever the reason, assets under management in the global private equity universe have continued to skyrocket higher, tripling in the last 10 years to US$15 trillion. And Partners Group Co-Founder Urs Wietlisbach believes this is likely going to double again in the next 10 years. 

In fact, although they may be biased, Partners Group believes that private equity is the new "traditional asset class" and public market equities (aka shares or stocks) are the new "alternatives". 

In this Views From The Top interview, Wietlisbach joins Livewire from Switzerland to share some of the major opportunities he is seeing as technological change rapidly accelerates today, how the firm is navigating a challenging exit environment, as well as a catalyst for retail investors to get into the institutional mindset when it comes to private market investments. 

Note: This interview was recorded on Tuesday 16 July 2024. 

Timecodes 

  • 0:00 - Intro 
  • 0:32 - Partners Group's point of difference in the world of private equity 
  • 1:11 - What are "evergreen funds"? 
  • 2:47 - Acceleration of technological change and impact on investment 
  • 4:17 - An example of this technological innovation at work 
  • 6:45 - Exit strategy 
  • 8:43 - "Public markets are the new alternative assets"
  • 11:05 - Catalyst for investors to start thinking like institutional players 
  • 13:03 - Why private infrastructure? 
  • 15:22 - Urs Wietlisbach's View From The Top 



To delve deeper into 'the new traditional asset class,' explore the whitepaper published by Partners Group here. Additionally, discover insights on navigating 'the evergreen frenzy' in their Private Markets 'Myth Buster' series here.


For more information about Partners Group or to start a conversation, feel free to reach out to the team.

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Partners Group Disclaimers Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the Partners Group Global Value Fund (Fund). Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT). This video has been prepared by Partners Group Private Markets (Australia) Pty Ltd ACN 624 981 282 AFSL 509285 (“PGA”), to provide you with general information only. In preparing this video, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither PGA, Equity Trustees nor any of its related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement before making a decision about whether to invest in this product.  The advice provided in this video is provided by PGA. Any advice provided is general financial product advice only and does not take into account your objectives, financial situation or needs. Before acting on the advice, you should consider how appropriate it is having regard to your objectives, financial situation and needs. You should consider the product disclosure statement for the fund, and consider talking to a financial adviser before making a decision to invest in, or continuing to hold, interests in the fund. Interests in the fund are issued by Equity Trustees. The product disclosure statement for the fund is available at https://www.partnersgroupaustralia.com.au/en/our-funds/funds- overview/" Professional Investors - Partners Group Evergreen SICAV - Partners Group Next Generation Infrastructure (SICAV) The information provided in this video is provided by Partners Group Private Markets (Australia) Pty Limited ACN 624 981 282 AFSL 509285 (PGA). The information contained in this video is not financial product advice and does not take into account your objectives, financial situation or needs. You should consider how appropriate the information is having regard to your objectives, financial situation and needs. Interests in the SICAV will be issued by Partners Group Luxembourg S.A. You should consider the Prospectus for the SICAV which will be made available when the Fund is released, and consider talking to a financial adviser before making a decision to invest in interests in the SICAV. Australian investors - Partners Group Next Generation Infrastructure Fund The information provided in this video is provided by Partners Group Private Markets (Australia) Pty Limited ACN 624 981 282 AFSL 509285 (PGA). The information contained in this video is not financial product advice and does not take into account your objectives, financial situation or needs.  You should consider how appropriate the information is having regard to your objectives, financial situation and needs.  Interests in the Partners Group Next Generation Infrastructure Fund (Fund) will be issued by Equity Trustees Limited ABN 46 004 031 298 AFL 240975. You should consider the Public Disclosure Statement (PDS) for the Fund which will be made available when the Fund is released, and consider talking to a financial adviser before making a decision to invest in interests in the Fund. Livewire gives readers access to information and educational content provided by financial services professionals and companies (“Livewire Contributors”). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.

1 contributor mentioned

Ally Selby
Deputy Managing Editor
Livewire Markets

Ally Selby is the deputy managing editor at Livewire Markets, joining the team at the end of 2020. She loves all things investing, financial literacy and content creation, having previously worked for the likes of Financial Standard, Pedestrian...

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