Private equity — an (asset) class in its own right

The capi­tal market has chan­ged funda­men­tally in the last year and a half. After almost 15 years of low inte­rest rates, access to favorable capi­tal capi­tal and steadily rising valua­tions, the signs have chan­ged in the Markets chan­ged. Due to the current inte­rest rate level, insti­tu­tio­nal inves­tors have now once again have the oppor­tu­nity to invest in attrac­tive, inte­­rest-bearing products. to invest. This is a comple­tely new situa­tion for private equity. Because over In recent years, many inves­tors have sought out this asset class because because they want to bene­fit from higher and stable returns outside the low inte­rest rate envi­ron­ment. were able to bene­fit. If one of the main moti­ves for invest­ments in private equity is largely disap­pearing, the ques­tion arises as to how inves­tors will deal with this asset class and what they will look for in the future when
provi­der and product selection.

Current envi­ron­ment
Insti­tu­tio­nal inves­tors are subject to signi­fi­cant regu­la­tory requi­re­ments in their invest­ment policy. This includes the propor­tio­nal limi­ta­tion of private equity invest­ments depen­ding on the investor’s capi­tal resour­ces. The Dax 40 fell by more than ten percent in 2022, the S&P 500 by almost 20 percent. As a result of the quota effect, the funds available to insti­tu­tio­nal inves­tors for private equity have been redu­ced accor­din­gly, even if the percen­tage requi­re­ments remain the same. In addi­tion, in an uncer­tain market envi­ron­ment, more liquid invest­ments are usually prefer­red in order to be able to react promptly.