Current private market levels do not indicate the formation of a bubble, as private equity valuations remain below those of public markets. Recent IPOs also demonstrate that value creation begins in private markets before the exit stage.
The issue does not lie in redemption restrictions in private credit funds themselves, as they serve to protect investors and the market while managing the exit process, but rather in the concentration of risks in traditional bond markets. This reinforces the importance of asset-backed private credit strategies.
While some private equity exits have been delayed due to market conditions, the sector is evolving through secondary markets and new investment structures designed to provide liquidity. This highlights the importance of selecting managers with sector expertise and a proven track record of exits.
The technology sector is not experiencing a bubble similar to 1999, but rather a shift in investor focus toward different sectors and markets, with increasing importance placed on distinguishing between sectors and focusing on opportunities that create added value.
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