A New Paradigm for Private Markets: An Examination of the New Normal for the Sector and a Focus on Private DebtANewParadigmforPrivateMarkets:AnExaminationoftheNewNormalfortheSectorandaFocusonPrivateDebt

Sponsored by PGIM in partnership with CFA Institute.

Private equity and private debt have grown rapidly as providers of capital for the new economic models that have emerged post-2000, largely focused on technology and intellectual property.

We explore the reasons for this progression and analyze whether the new macroeconomic paradigm post-Covid, characterized by stickier inflation and higher-for-longer interest rates, could impact this trajectory. We also investigate the specific sector of private debt, which has seen the fastest growth rate in private capital. Is private equity disentangling itself from its private debt counterpart, and will higher interest rates disrupt this trend?

Speakers:

• Olivier Fines, CFA Institute
• Matthew Harvey, Executive Managing Director, PGIM Private Capital
• Zack Ellison, Founder & Managing General Partner, Applied Real Intelligence (A.R.I.)

Key topics:

• How can we explain the general rise in private market investments since 2000?
• Has this been US-centric or a global phenomenon?
• Have twenty years of expansionary monetary policy and low interest rates fueled or facilitated this rise in private capital?
• Should we expect a higher interest rate environment to impact private markets strategies? Any reason to expect risk levels to rise?
• Should we expect default rates to rise?
• How can we expect private debt to react to this new macroeconomic paradigm? Is stagflation in the cards?