Private Market Bright Spots and Warning Signals

WE Family Offices Managing Partner Michael Zeuner recently sat down with Senior Investment Manager Matt Farrell, CAIA, to call upon the latter’s in-depth expertise in private and alternative markets for a special conversation exploring past, present and potential future private market activities, and how family offices can take advantage of the current environment.

Some of the topics Zeuner and Farrell specifically address include:

• How rising interest rates have impacted the private markets from multiple perspectives
• Private market sectors that have reaped the benefits of a higher rate environment
• Whether a portfolio’s exposure to different private market vintage years should change moving forward
• Spaces within private markets that seem more interesting from a 2023 vintage year perspective
• An overview of secondary markets in private investing and why it is an opportune time to utilize this asset class
• How to combine secondaries and venture capital to take advantage of current opportunities
• Current outlook for cash flows within the private markets and whether it is sector specific

Regardless of what may lay ahead, when investing in private markets, it is crucial to stay on course with your strategic program, invest consistently across vintage years and maintain proper diversification. As always, if you have any questions about the debt ceiling or anything else discussed during this podcast, please do not hesitate to contact us.

This episode was originally recorded in May 2023.

Important Information:

This podcast contains our current opinions and commentary that are subject to change without notice. Our commentary is distributed for informational and educational purposes only and does not consider the specific investment objective, financial situation, or particular needs of any recipient. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. The information contained herein does not constitute legal or tax advice to any person. Please consult with your tax advisor regarding any taxation implications of the information presented in this presentation. 

Private market and certain fixed income investments are very risky and should only be incorporated in a portfolio after a careful assessment of the private investment’s offering materials and other information in consultation with your investment, tax, and legal advisors. Private market and certain fixed income investments are often less liquid than traditional investments and among the primary risks are long term illiquidity, lack of transparency, lack of control of the investment vehicle and investment decisions, and in the worst case, the total loss of your investment.

Certain statements contained herein may constitute “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “target”, “project”, “estimate”, “intend”, “continue” or “believe” or the negatives thereof or other variation thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance may differ materially from those reflected or contemplated in such forward-looking statements. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions.