A review of the global private markets in 2022
Mar 22, 2023, 16:39 IST
A review of the global private markets in 2022
A mixed 2022
Private markets (private equity, private debt, real estate, infrastructure, and natural resources) faced a year of two halves in 2022: the first six months of buoyancy, followed by a summer where deal volume plummeted, performance declined, and valuations fell.
Private markets fundraising up in North America, down in Asia and Europe
Private markets fundraising in North America increased 2 percent year-on-year, climbing to a new record high, while fundraising in Asia and Europe fell 39 percent and 28 percent, respectively, in dollar terms.
Deal making fell by 26 percent in 2022
Deal making fell 26 percent for the year, with the vast majority of that decline occurring in the second half as inflation-combatting interest rate hikes took effect.
Private markets fundraising decline
Global private markets fundraising declined by 11 percent in 2022, with real estate (-23 percent ) and private equity (-15 percent) declining most steeply from all-time records in 2021. Private credit (+2 percent) proved more resilient.
PE not the highest performing asset class
2022 was the first year since 2016 that private equity (PE) was not the highest-performing private asset class, posting a -9 percent return through September.
Best year for ESG-focussed funds
The year 2022 is on track to be the best yet for ESG-focused funds – $24 billion was raised through the first half of 2022, quickly approaching the previous record-high of $28 billion in all of 2021. ESG stands for environmental, social and governance.
Growth of private fundraising
Private debt fundraising grew 2 percent in 2022, and has grown 11 percent per annum over the last 5 years. As bank financing dried up in the second half of the year, private lenders stepped into the void.
Growth in Infrastructure and natural resources fundraising
Infrastructure and natural resources fundraising grew 7 percent to an all-time high of $158 billion in 2022, benefiting from an unprecedented total of five funds over $10 billion being closed.
Rents grow but global deal volumes decline in real estate
In real estate, rents grew across sectors, but global deal volume declined 20 percent. After more than doubling year-over-year in 2021, multi-family deal volume fell 29% in 2022.
Women now comprise 48 percent of entry-level roles, but just 22 percent of managing director (MD) roles.
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Gold price tumbled by ₹480 to ₹58,770 per 10 gram on Wednesday
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The Global Private Markets Review 2023, published by McKinsey & Company, provides a comprehensive analysis of the dynamics and performance of the private investing industry. Here are its key findings. A mixed 2022
Private markets (private equity, private debt, real estate, infrastructure, and natural resources) faced a year of two halves in 2022: the first six months of buoyancy, followed by a summer where deal volume plummeted, performance declined, and valuations fell.
Private markets fundraising up in North America, down in Asia and Europe
Private markets fundraising in North America increased 2 percent year-on-year, climbing to a new record high, while fundraising in Asia and Europe fell 39 percent and 28 percent, respectively, in dollar terms.
Deal making fell by 26 percent in 2022
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Private markets fundraising decline
Global private markets fundraising declined by 11 percent in 2022, with real estate (-23 percent ) and private equity (-15 percent) declining most steeply from all-time records in 2021. Private credit (+2 percent) proved more resilient.
PE not the highest performing asset class
2022 was the first year since 2016 that private equity (PE) was not the highest-performing private asset class, posting a -9 percent return through September.
Best year for ESG-focussed funds
The year 2022 is on track to be the best yet for ESG-focused funds – $24 billion was raised through the first half of 2022, quickly approaching the previous record-high of $28 billion in all of 2021. ESG stands for environmental, social and governance.
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Growth of private fundraising
Private debt fundraising grew 2 percent in 2022, and has grown 11 percent per annum over the last 5 years. As bank financing dried up in the second half of the year, private lenders stepped into the void.
Growth in Infrastructure and natural resources fundraising
Infrastructure and natural resources fundraising grew 7 percent to an all-time high of $158 billion in 2022, benefiting from an unprecedented total of five funds over $10 billion being closed.
Rents grow but global deal volumes decline in real estate
In real estate, rents grew across sectors, but global deal volume declined 20 percent. After more than doubling year-over-year in 2021, multi-family deal volume fell 29% in 2022.
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Women representation still low in MD rolesWomen now comprise 48 percent of entry-level roles, but just 22 percent of managing director (MD) roles.
SEE ALSO:
Sensex, Nifty50 likely to open on a positive note ahead of FOMC outcome: Tata Motors, M&M, L&T among stocks to watch
Gold price tumbled by ₹480 to ₹58,770 per 10 gram on Wednesday