- Fears that private investments are due for a price crash to match the drop in stock markets are overblown.
- Most private companies were priced at a substantial discount to public companies in the same sector at the start of 2022.
- Falling public markets have narrowed the gap, but privately held communications and consumer discretionary companies were the only ones held at a higher multiple of earnings than their public peers as of late last year.
- Private equity-owned companies as a whole held their value through the 2000s dotcom bust and after the 2008 financial crisis.
- Private equity owners can often avoid taking writedowns by holding on to their investments until public markets bounce back.
Financial Times — World — Private Equity — Us & Canadian Companies — Private Investing — Fund Management
Private company valuations defy fall in listed stocks, adviser says
Fears that private investments are due for a price crash to match the drop in stock markets are overblown, according to a prominent manager and adviser for private portfolios.