Our Relative Value Committee (RVC) assesses the relative value of the various private market sub-segments (private equity, private debt, private real estate and private infrastructure) and investment styles based on the current macroeconomic environment and state of the private markets industry. We share the conclusions of the RVC meeting internally and externally with clients in the Private Markets Navigator. This tool contains the respective Relative Value Matrices for the various private markets asset classes and the trends that shape the investment environment. Different trends are identified for the different asset classes and geographies. Among these trends, we consider:
Environmental: The transformation of the global energy mix from fossil fuels to renewable generation remains one of biggest investment opportunities in infrastructure. Emerging themes that we are following include the internationalization of offshore wind, energy storage and “direct-to-consumer” renewables, along with investments that ensure greater energy reliability as we face intermittencychallenges with renewables (battery storage).
Social: In healthcare, we are targeting investments that offer value-based care for aging populations (e.g. ophthalmology). We are also interested in private education and EdTech related investments.
Governance: With the growth of financial digitalization, we are targeting investments in governance solutions, such as risk and compliance software.