Unlocking Value in Private Asset Portfolios

The private asset market has seen a large number of companies traded, leading to assets with potential value stuck in portfolios that require improvement in cash flows, income statements, and balance sheets for attractive exits. The uncertainty related to macroeconomic and geopolitical factors, such as inflation, recessions, and geopolitical events, is causing hesitancy in deal-making. Despite these challenges, there is a significant amount of dry powder, around $4 trillion globally, waiting to be deployed in the private asset market, with over a trillion dedicated to buyouts. General partners have commitments from limited partners and are prepared to invest this capital, which could potentially lead to around $2 trillion worth of deals over the next few years.