UBS – Private markets, June 2024

Private assets are seen as crucial for long-term investment strategies due to potential benefits in terms of better risk-adjusted performance and enhanced diversification. UBS recommends exposures to value-oriented buyout in private equity, as well as allocations to secondaries. They also suggest investing in private credit with disciplined underwriting approaches. In real assets, private real estate is considered a good diversifier, despite expected challenges in the multifamily sector in 2024. Private markets have not moved as drastically as public markets, offering opportunities for investors. Valuations in the US LBO market are stabilizing, providing a chance to acquire assets at favorable prices. UBS predicts exit options for portfolio companies to improve moderately, particularly with secondary exit solutions becoming more popular. Long-term growth prospects in private equity, especially in themes like the green economy and digitalization, remain promising despite short-term obstacles. Overall, the private equity industry is expected to recover after a challenging 2023, with caution in deal activity at the beginning of 2024.