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