The rush of investors to the unlisted stronger than ever, despite the Covid

Posted on Nov 24, 2020 at 10:43 AM

Among private equity investors, the Covid effect does not exist. The appeal of double-digit returns in the asset class remains strong despite the economic shock triggered by the health crisis. “Interest rates near zero are driving ever-increasing demand for hedge funds”, welcomed at the end of October Jon Gray, the president and head of operations of Blackstone, the world number one in private equity. Private equity, the main segment of alternative assets, with 4.4 trillion dollars in assets, and supported by the strongest growth, is expected to more than double in size by 2025 according to Preqin, to more than 9.9 trillion.

Since January, more than 1,000 management companies around the world have raised 469 billion dollars, after a record year in 2019 since the financial crisis, to 700 billion, according to the Preqin cabinet. “To date, we have raised 80% more capital than during the same period in 2019, which positions us particularly well to take advantage of future growth”, said Robert Lewin, CFO of KKR on October 30. Capital also flows into unlisted debt funds. The American Värde announced a few days ago that he had raised 1.6 billion dollars in just five months, for his fund aiming “The opportunities presented by the historic dislocations of the market and the disruptions resulting from the pandemic”, in addition to the 1 billion raised through other channels at the start of the year.

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