May 11, 2023

What Lies Beneath… – Global Outlook & Strategy Q2, 2023

Global Strategy

The first quarter of 2023 provided a reality check for investors focused on private markets. Following the abrupt end to an extended period of monetary accommodation in 2022, the ramifications of the switch to a substantial tightening in monetary policy began to be revealed.


  • We are starting to see the ramifications of the swift increase in interest rates (tighter monetary policy) after a prolonged period of zero cost of capital (free money).
  • Where the stresses may arise is starting to become clearer.
  • Whilst valuations in listed securities (public markets) were quick to adjust to the new environment, unlisted assets (private markets) across real estate, private equity, private credit, and venture capital have been slow to adjust. Price discovery across unlisted assets is in process.
  • We remain defensive and cautious given the volatility that is likely ahead of us but are ready to deploy elevated cash holdings into distressed assets at attractive valuations as the unwind continues.

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