Private markets insights
Why wealth portfolios need to go private
The vehicle of choice
How to navigate the new golden era
Following the rapid growth seen in the infrastructure market over the last decade, secondaries are now the fastest growing sub-segment within the asset class – in short: Infrastructure secondaries are taking off.
In this quarter’s Private Debt In-Focus we take a deep-dive into opportunities within the technology sector and explore why we maintain a favorable view on the sector despite the gyrations in the public markets and the volatility in tech spending.
Explore our analysis of the venture capital market; a dynamic and rapidly evolving landscape shaped by macroeconomic shifts and technological advancements.
Nathalie von Niederhaeusern heads up BlackRock’s Private Equity Partners in EMEA, overseeing 14 investors. She sat down with us recently to talk all things private equity.
Find out why 2024 feels like a turnaround year, which strategies and sectors are especially popular right now, and how Nathalie rates the AI opportunity in Europe.
Secondary market thrived last year, offering buyers significant discounts on diverse, quality portfolios. $115 billion deals closed in 2021. So, what’s next?
We’re expecting further growth in dealmaking, with buy-side innovations and increased focus on portfolio quality from sellers.
Wind turbines and solar panels hit record installations last year, debunking growth stagnation myths. Renewables could generate 35% of global energy by 20254. Despite challenges, reconfiguring energy systems offers growth opportunities and portfolio balance.
We look to identify changes reshaping our world and believe the mega forces – digital disruption & AI, the low-carbon transition, demographic divergence, the future of finance and geopolitical fragmentation – offer potential investment risks and opportunities. We view private markets as being uniquely positioned to benefit from these shifts.
The battery of the future is essential to the transition to a low-carbon economy, from powering electric vehicles to enhancing the reliability of the electric grid. Here are some of the private companies leading the development of these next-generation technologies, which we’re investing in on behalf of our clients.
Introducing some of the private companies that are developing the next-generation technologies that will shape the low-carbon car of the future. BlackRock is one of the largest investors in the automotive sector. In addition, we have US$170B invested in public automotive companies on behalf of our clients, putting money to work in private markets.⁵
Mark Everitt, CFA, Head of Investment Research and Strategy, BlackRock Private Markets left attendees with these three take aways during the recent virtual event:
1. Don’t skip this vintage.
2. Focus on being active.
3. Mega forces will continue to be a real driver of growth and the investment opportunity set going forward.
One approach to portfolio construction that we think must evolve is the broad allocation to listed equities and bonds. The increasing correlation of public stocks and bonds means it's difficult to find diversification and sources of returns. To help make portfolios more resilient, investors are considering exposure to alternatives investments.
Private markets are no longer an ‘alternative’ asset class. In fact, they may be more crucial to a diversified portfolio than ever before. The BlackRock Investment Institute believes that private assets should play a much more prominent role in many portfolios.
1 BlackRock, as of March 21, 2024.
2 BlackRock, Preqin June 30, 2023.
3 BlackRock, Preqin June 30, 2023.
4 IEA, Electricity Market Report 2023.
5 BlackRock, Investing Today in the Car of Tomorrow, as of 5 October 2023.