NEPC’s Sarah Samuels was recently featured in an Institutional Investor article discussing the challenges in private equity and venture capital, predicting more struggles ahead due to falling valuations and investors becoming more cautious. View excerpts below or read the full article on the Institutional Investor site here.
Private equity has been tested in recent years: Investors earned strong returns on stocks while PE struggled and alternative managers and investors couldn’t even agree on valuations. All of this has prompted a flight to safety, with investors committing most of their capital to the largest, brand name funds last year.
. . .
“I believe there’s more pain to come in venture capital marks,” Samuels told Institutional Investor.
. . .
“There’s a lot of goodwill that’s been destroyed between GPs and LPs,” Samuels said before adding, “I’m a little worried about some of the dollars in the ground today for further down marks.”
. . .
Within buyouts, NEPC isn’t seeing deals happen fast enough due to “an impasse between buyers and sellers.”
“They don’t want to meet on price,” she said. “The sellers don’t want to come down, the buyers don’t want to come up further.” Samuels added that the IPO market is open, but private companies need to be properly priced before going public.
Click here to read the full article on the Institutional Investor site.