Ryan McNelley, Managing Director in Duff & Phelps Portfolio Valuation practice, recently spoke to the Financial Times about return on private assets for investors during a time of record-low interest rates.
Although private assets globally rose to USD 6 trillion in 2019, generating returns has remained a challenge. Talking about how the popularity of many such assets have driven up their prices and affected returns, Ryan said, “If you’re buying private equity at a point when entry multiples are so high, it creates a challenge for you in figuring out ways of creating new value.”
Referring to private asset investors’ environmental, social and governance (ESG) credential concerns, Ryan added, “Increasingly they’re making sure that managers are not just greenwashing, but that they are actually following their ESG framework in good faith, and that they’re reporting back to investors.”
Subscribers of Financial Times can read the article here.
