Gateway Partners’s CEO on Negative Rates, Private Equity, Aramco IPO

The video discusses the impact of negative interest rates on asset bubbles and private equity values, highlighting the risks associated with leveraging assets in low-rate environments. It explores the influence of US-China trade tensions on global investment flows, particularly in regions like Africa and Asia. The discussion also covers opportunities within the GCC, including potential deals in the food sector, and provides insights into IPO strategies, emphasizing the importance of valuation and market conditions.

How do negative and low interest rates affect asset valuations?

• They decrease asset valuations.

• They have no effect on asset valuations.

• They stabilize asset valuations.

• They create an asset bubble by increasing valuations.

What is a significant risk when borrowing against assets in markets with easy money?

• Increased taxation

• Significant risk of overvaluation

• Asset devaluation

• High borrowing costs

Despite US-China trade tensions, which trade corridor has shown significant growth?

• US-India

• US-Europe

• China-Africa

• Europe-Asia

What sector is seeing potential deals within the GCC according to the discussion?

• Technology

• Automotive

• Healthcare

• Food

Why might a company choose to keep an IPO small and domestic?

• Because of high global demand

• To maintain control over valuation

• Due to low domestic interest

• To avoid international regulations