Money Undercover: The State of Private Equity

The transcript discusses the current trends and challenges in private market valuations, highlighting the lag in private markets compared to public ones. It explores the impact of COVID-19 on valuations, the potential investment opportunities in a high-interest rate environment, and the growing interest in private credit over private equity. The discussion also touches on the importance of asset mix and the expectations of institutional investors regarding yields.

What is the average drop in returns for recent vintage years in private markets from December 2021 to the third quarter of 2023?

• 3000 basis points

• 1600 basis points

• 500 basis points

• 1000 basis points

How much did venture capital valuations spike by as of December 2021?

• 100%

• 50%

• 75%

• 90%

What is the current trend in fundraising compared to the last five years?

• At a 7-year low

• At a 10-year high

• Increasing rapidly

• Stable

Why might the current investment environment be interesting for investors?

• Stable market conditions

• Less competition in bidding

• Low interest rates

• High availability of capital

What is one reason private credit is becoming more attractive today?

• Higher inflation

• Increased market volatility

• More calibrated underwriting

• Decreased interest rates

What are some investors considering to complement their fixed income exposure?

• Private credit

• Real estate

• Public equity

• Cryptocurrency

What do some LPs rely on to fuel their programs for constituents?

• Government bonds

• Yield from private credit

• Real estate investments

• Equity returns