Thursday, March 2, 2023

Private Equity Feels Impact of Higher Real Interest Rates

Exuberance in public markets seems to have been matched in private markets, as ultra-low interest rates shaped the investment climate in all markets. Higher real rates are having the opposite effect, as Adams Street Partners data suggests. 


source: Adams Street Partners

Deals will be smaller and the volume of transcations will drop as a result. Less money raised also means less money invested. That should mean longer runways to exits.

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AI as Industrial Policy has Precedents

It does appear that a partnership between the U.S. federal government and firms developing artificial intelligence is developing. Some examp...