A global divergence in growth, inflation, and central bank policy has many investors looking East in the second half of 2023. Asia’s macro outlook appears healthier than in much of the rest of the world, with China’s recovery – if uneven – supporting growth in the region and in emerging markets more broadly. In contrast, the EU contracted in the first quarter, and the US faces prospects for a slowdown. Against this backdrop, we see a changing opportunity set for alpha across asset classes.
With LPs looking to rebalance, the future of private equity secondaries might look more like the past. Steve Costabile, PineBridge’s Global Head of Private Funds, explains why some of the most interesting opportunities in secondaries right now require a back-to-basics approach.
Private credit direct lending has shown its resilience through multiple cycles under stressful conditions, but it’s critical for investors to look “under the hood” at a portfolio’s cushion to weather current macro challenges.
A robust Asian growth story supported by gradually improving consumption spending should promote opportunities for equity investors in the second half of 2023.
Solid fundamentals and an improving macro backdrop create a compelling case for investors to tap select Asian investment grade and high yield opportunities.
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