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Innovation supercycle driving perception of private markets investing opportunities, says new survey

Adams Street Partners, a private markets investing firm with over USD51 billion of assets under management, has released its 2022 Global Investor Survey which reports that 86 per cent of respondents believe private markets will outperform their public market equivalents over the long term.  

Adams Street Partners, a private markets investing firm with over USD51 billion of assets under management, has released its 2022 Global Investor Survey which reports that 86 per cent of respondents believe private markets will outperform their public market equivalents over the long term.  

The risks identified by respondents, including inflation, rising interest rates, and geopolitical conflict, weren’t enough to upend their overall optimism in the innovation supercycle that is driving a decades-long digital transformation of the global economy.

Some 44 per cent of surveyed investors believe that the APAC region (China, Japan, Australia, and emerging markets) continues to offer the best investment potential in 2022. Europe is now on par with North America for investor sentiment, with respondents citing more attractive valuations in Europe despite an increase in “unicorns” valued at $1 billion+ in 2021.

For the second year in a row, survey participants see three sectors offering the most opportunity – financial services, technology, and healthcare.

In a significant change this year, nearly all respondents (98 per cent) said ESG considerations affect their investment strategy, up from 81 per cent in 2021.

A total of 92 per cent of participants indicated their companies are likely or very likely to invest in digital assets backed by blockchain technology in the next two years, citing it as “an indispensable technological foundation” and a gateway for new asset classes.

Some 87 per cent of respondents meanwhile, say their companies have implemented a hybrid model or have plans to do so this year. 89 per cent offer flexible scheduling or working hours depending on individual needs. 83 per cent believe that the pivot to meeting online for external meetings is more efficient than in-person meetings.

While generally optimistic, respondents cited inflation (81 per cent) and interest rate rises (84 per cent) as new concerns, with ing87 per cent of participants remain cautious of the continued impact of the pandemic.

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