New report finds institutional allocators see opportunities for growth in private markets amid global risks
A new global research programme conducted by The Economist Intelligence Unit (EIU) and supported by Adams Street Partners (Adams Street) finds that 85 per cent of global institutional investors expect private markets to outperform public markets in the long term, with 80 per cent of respondents agreeing that these markets are less susceptible to volatility.
This study also found that 86 per cent of these investors believe that the continued spread of Covid-19, as well as issues with vaccine distribution, will have a major impact on private market strategies as we make headway into 2021 – only 13 per cent believed that their portfolios would be minimally impacted.
Anxiety about the pandemic is not the only concern for investors - an overwhelming majority view geopolitical risk as a critical factor when assessing private market opportunities.
The findings are part of a research report – “Leveraging Opportunity in Change: Navigating the Trends Shaping Private Markets in 2021 and Beyond,” written by the Economist Intelligence Unit and published today by private markets firm Adams Street Partners. The report is based on in-depth qualitative interviews and survey data collected from 110 institutional private markets investors, including pension funds and investment managers in Asia, Europe, and North America.
Jeff Diehl, Managing Partner and Head of Investments at Adams Street, says: “The behavioural changes we have seen during the Covid-19 pandemic have made a lasting impact on private market investors, accelerating structural changes that were already underway. We believe private markets are well-positioned to be a driving force behind long-term innovation, job creation, and growth on the global stage.”