Christian Frei: Geopolitical Uncertainty

StepStone Reflections on Private Markets

In this episode of RPM, we’re talking about the direct and indirect effects of the war in Ukraine.

  • While private markets may have relatively little direct exposure to Russia, Ukraine, Poland and Belarus (2:00), measuring the indirect effects is more difficult.
  • In some instances, the higher prices and price inflation that the war may effect could provide a tailwind to some asset classes (10:40).
  • Because private market valuations lag behind those of public markets, investors often wonder what the latter portends for the former. In short, private equity valuations fall half as much as their public equity counterparts; in private debt, market value declines have been 5x or greater than subsequent credit losses (12:56).

All that is to say that an allocation to private markets can add stability to a portfolio.

StepStone Group
StepStone Group

StepStone Group (Nasdaq: STEP) is a global private markets investment firm focused on providing customized investment solutions and advisory and data services to our clients. StepStone’s clients include some of the world’s largest public and private defined benefit and defined contribution pension funds, sovereign wealth funds and insurance companies, as well as prominent endowments, foundations, family offices and private wealth clients, which include high-net-worth and mass affluent individuals. StepStone partners with its clients to develop and build private markets portfolios designed to meet their specific objectives across the private equity, infrastructure, private debt and real estate asset classes.

W. Casey Gildea
Managing Director
450 Lexington Avenue, 31st Floor
New York, NY 10017

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