About the report

Despite a global pandemic and the economic hardship that has befallen so many, 2020 has redoubled our confidence that the right private markets funds have a place in any portfolio. We see a bright future for investors allocating to private markets funds, particularly private equity funds and mixed-strategy funds that combine elements of private equity and distressed debt.

Key highlights

• It is a good time to be in markets Excess cash balances face both (i) low or negative interest rates and (ii) the potential inflation that could follow the record central bank interventions that came this year.

• Private markets investors are less likely to overpay In public markets, there is always a greater fool — the buyer who takes you out of your position at an inflated price — especially with the pre-eminent role of narrative in valuation. In private markets, investors use a more nuanced valuation toolkit.

• Many of the best deals will emerge in the aftermath of this year The investment period of a private markets fund typically covers five years. This long horizon gives these funds the freedom to capitalise on the mid-term opportunities that come as a post-virus truth.

‍‍‍‍‍Important notice: This content is for informational purposes only. Moonfare does not provide investment advice. You should not construe any information or other material provided as legal, tax, investment, financial, or other advice. If you are unsure about anything, you should seek financial advice from an authorised advisor. Past performance is not a reliable guide to future returns. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Subject to eligibility.