Anthony Leatham for The Telegraph: Private markets can be hard to access. Typically illiquid and opaque in nature, the defining investment under the alternatives banner has rewarded investors who have committed capital over the long term, offering a 14pc annualised total return since 2001 – double that of the FTSE All-Share’s 7pc, according to recent data from the British Private Equity & Venture Capital Association. However, it cannot be denied that the last two years have been more challenging. Global uncertainties and macroeconomic conditions have weighed heavily on fundraising and realisation volumes, with private equity valuations under pressure as a result. But in the context of a more benign financing environment, we are seeing signs of a rebound in dealmaking, and the flywheel effect of increased exit activity is likely to be an important catalyst for the sector. Not only are we seeing a turning point in market conditions and transactional activity, but we also note that an increasing proportion of the fastest-growing businesses in the world are private. According to a PwC report from the end of 2024, the combined valuation of the top 100 “unicorns” – privately held start-ups valued at over $1bn (£780,000m) – has reached over $2 trillion, with fintech, artificial intelligence, information technology and e-commerce standing as the key sectors. Read the full article here: https://lnkd.in/e64pgktP #investmenttrusts
