N@N

Be selective in private credit, look for a revival in private equity

The article from the Australian Financial Review discusses the evolving landscape of private credit and private equity markets as of late 2024. It highlights that while private credit has been a popular choice for investors due to its high yields and lower volatility compared to public markets, selectivity is crucial. The piece advises investors to be cautious with private credit investments, focusing on quality over quantity due to potential risks like rising defaults and economic downturns. On the other hand, there's an anticipated revival in private equity, driven by a more stable economic environment, lower interest rates, and a backlog of deals waiting to be executed. The article suggests that private equity could offer significant opportunities for those looking for growth, especially in sectors that have been undervalued or overlooked during the recent economic turbulence. It emphasizes the importance of due diligence, understanding the underlying assets, and the strategic timing of investments in both asset classes.

Read the Full The Australian Financial Review Article at [ https://www.afr.com/wealth/investing/be-selective-in-private-credit-look-for-a-revival-in-private-equity-20241122-p5kstw ]