Interest rate expectations to shape the path for private markets in 2024

Adjustment to a new environment

Valeria Martinez
clock • 6 min read

The outlook for private markets will continue dictated by interest rate expectations and uncertainty over economic growth in the coming year, presenting distinct challenges and opportunities for each asset class.

Having flourished during a decade and a half of low interest rates, private market firms are now grappling with a landscape of prolonged higher rates, posing a considerable strain to the space's overall growth and performance. Heading into 2024, Ben Seager-Scott, head of multi-asset funds at Evelyn Partners, said the new year was going to have "more headwinds than tailwinds" for most mainstream private markets, which he argued mostly comes down to higher interest rates.  "[Higher interest rates] both raises the bar for required returns on the dry powder and makes the cost of leverage ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Alternatives