Research Paper
Private Markets Annual Update
A look into how the year in private markets unfolded and thoughts for a successful 2023
April 2023
Introduction
For many, 2022 was a year of resetting expectations. Public markets – both equity and debt – were faced with pressure as a result of persistent inflation and corresponding interest rate hikes. Investors were left with few places to hide as the market adjusted to the ramifications of a new era. The capital markets disruption also had notable, if not material, impacts on the private markets. Fundraising fell, deal volume fell, exits slowed and the delay, as well as less drastic changes in valuations resulted in a meaningful denominator effect for many limited partners (“LPs”). There were also multiple acute events that sent shocks through the market such as the blowup of FTX or, more recently, the downfall of Silicon Valley Bank (“SVB”). These gripping episodes, while not necessarily abnormal in a historical context, highlight the importance of diligence, governance and diversification.
