Mackenzie Investments projects growth in private markets as public market volatility rises
New report highlights rising opportunities in private equity, credit, and infrastructure investments
Mackenzie Investments, in collaboration with Northleaf Capital Partners, has released its first-ever Private Markets Outlook report.
This report is aimed at financial advisors and investors, offering insights into private market asset classes, and identifying the key factors expected to drive growth in private markets investing.
The report anticipates increased investment opportunities in private equity, private credit, and private infrastructure. Companies are remaining private for longer, and the growing need for private capital is seen as vital in supporting infrastructure projects essential to modernizing economies.
With recent public market volatility, investors are looking beyond traditional investments for products that offer enhanced alpha potential and increased diversification. The report predicts that these factors will continue to fuel investor interest in private market opportunities.
“With the recent volatility in the broader public markets, we expect to see accelerated growth in the private markets given the growing range of accessible, compelling investment opportunities, many of which are still largely untapped by individual investors,” said Allan Seychuk, vice president, Alternatives, Mackenzie Investments.
He added that new fund structures have emerged over recent years, making private markets more accessible to individual investors, resulting in a wider range of investment opportunities.
The Private Markets Outlook highlights three primary themes that are expected to present strong mid-market opportunities for investors:
This trend is leading more institutional investors to seek liquidity solutions to fund growth opportunities and manage risk. Despite this growth, secondaries still represent less than five percent of the private equity market, indicating potential for further expansion.
Opportunities in Private Credit
As regulatory restrictions prompt banks to step back from lending to private companies, private lenders are positioned to capitalize on the demand for flexible capital solutions.
Private credit lending has historically offered investors a return premium compared to many public fixed-income investments, with a focus on capital preservation and lower volatility.
Increased Demand for Infrastructure Assets
Northleaf also predicts rising demand for infrastructure investment in areas such as bridges, roads, power generation, and telecoms, driven by the need to maintain and repair aging infrastructure. Public funding alone cannot meet the substantial capital requirements for such investments.
Private infrastructure presents new opportunities, particularly in sustainability and technology, and is expected to become one of the fastest-growing segments within private markets.
“Private markets are expected to provide new and notable investment opportunities for institutional and individual investors,” said Nadim Vasanji, managing director at Northleaf Capital Partners.
He emphasized that private investments have shown resilience across economic cycles, offering returns and diversification benefits to portfolios. Vasanji expects more investors to increase their exposure to private assets as a complement to their public market investments.
link
