General Atlantic, a US-based growth equity investor with over $86 billion in assets under management, is expecting private company valuations to fall in the second half of the year as startups begin to to run out of cash, according to a report by Bloomberg.
General Atlantic, a US-based growth equity investor with over $86 billion in assets under management, is expecting private company valuations to fall in the second half of the year as startups begin to to run out of cash, according to a report by Bloomberg.
In a speech at the the Wharton Global Forum Singapore 2023 on Friday, Bloomberg reports General Atlantic managing director Sandeep Naik as saying that private market valuations remain too high and will eventually start to emulate their publicly-traded peers.
“Some of these companies that raised tremendous amounts of capital in 2020 and 2021 when the markets were hot, they are now running out of cash and these companies are coming to market as we speak,” said Naikwho is head of India and Southeast Asia at General Atlantic. “In the back half of this year you’ll see private markets completely start matching the valuation expectations of where they should be and there’ll be significant down-rounds in those companies.”
