For Investors Looking for Returns of 7-9%, Private Markets Seem Like The Only Game in Town

"Given the exuberant growth, many observers had predicted the private capital industry would be hit hard in a downturn."

"But perhaps this is merely the end of the beginning of a new era of private capital, rather than the beginning of the end."

…

"Before, investors could kid themselves that they could wait until bond yields approached normality, but normality has now been redefined. Most investors still hanker after returns in the 7-9 per cent range. Private markets are pretty much the only areas where this looks feasible. 

"At the same time, companies are tiring of the burdens and relentless daily scrutiny that goes with being publicly listed. The trend towards businesses remaining private is likely to be accentuated by the crisis. While more companies have been raising money in the bond market, it remains a viable option for big businesses only. Smaller ones are likely to turn to private debt funds in even greater numbers to cope with the downturn."

See Robin Wigglesworth's (@robinwigg) piece, Why private capital will benefit from the crisis, on the @FT:  https://www.ft.com/content/b104940f-bf3b-4090-bcb2-50aef67da564?desktop=true&segmentId=7c8f09b9-9b61-4fbb-9430-9208a9e233c8#myft:notification:daily-email:content

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