Macroeconomic headwinds have forced private market participants to play it safe on fund sourcing and deployment, and actively engage with portfolio companies to defend valuations. While near-term uncertainties linger, the medium-term outlook for private equity and private credit remains positive, helped primarily by supportive supply and demand dynamics.
Given the milieu, CRISIL GR&RS hosted its first Private Markets Forum in New York on 27th June 2023, where experts discussed and deliberated on various aspects of the private credit and private equity asset classes.
Private markets are expected to continue to grow in the short term. However, there are also challenges to navigate, owing to uncertainty in the macroeconomic environment.
The primary area where private market firms expect regulatory oversight is with regard to portfolio allocation followed by portfolio valuation.
Private credit posted multi-fold growth over the past decade and keeping up with risk management and surveillance practices are becoming key differentiators for asset managers.
PE firms, while looking for new investments, are focusing on better entry prices and risk management
