A recent study by CoreData Research found that European fund selectors are switching from public to private markets. The study surveyed 130 European fund selectors about how they view private markets—one-third indicated they are switching from public to private markets, and 31% think the latter will outperform the former. Fifty-one percent said the reason for the switch was rising inflation and low bond yields.  

A recent study of 130 European fund selectors by CoreData Research found that they are switching from public to private markets. Fifty-one percent of those surveyed said the reason for the switch was rising inflation and low bond yields. One-third of respondents indicated they are switching from public to private markets, and 31% think the latter will outperform the former.  

Another motivating factor cited in the report is an increasing number of companies are choosing to remain private which, in turn, makes private markets more attractive.  

Sustainability was also cited by investors as a reason for preferring private over public markets. Almost 40% of fund selectors think that private markets will be critical to achieving net zero.  

Andrew Inwood, Founder and Principal at CoreData: “Private markets are fast becoming central to investment strategies as they move from the alternative to the mainstream. While private markets offer the prospect of superior, uncorrelated returns, they also present a broader opportunity set by tapping into structural trends at the forefront of economic and sustainable change.”  

 

Source: https://institutionalassetmanager.co.uk/study-reveals-investor-shift-from-public-to-private-markets/