Interesting times can create interesting opportunities. In the past 12 months, we’ve seen interest rates rise, traditional lenders cutting back, and several banks fail. The current macroeconomic environment demands a response from investors and wealth managers.
Opto co-founder Jacob M. recently discussed the opportunities that these interesting times create in private markets with Michael Durso, CFA®, co-founder and CEO of ShoreHaven Wealth Partners.
Come chat with us about the role private markets can play in challenging times: https://lnkd.in/gW4ftM5G#privatemarkets#wealthmanagement#investment
So what we have happen this year? Fed raised rates pretty significantly. There were many banking stresses
from Silicon Valley Bank, First Republic, many regionals, capital
has pulled back significantly. This opens up a lot of opportunity
in the private space for non-bank players in the private credit world to step in
and give loans where banks have stopped doing so. Similarly, on the venture space, you know, when times are good,
how do you win a venture deal? You just write the biggest check
at the highest valuation. When capital becomes more expensive,
people really look to who are the best VCs? Who's going to help me
hire, grow, find clients? You have a return to quality there. That scarcity of capital is leading
to a return in focus to where those private equity, venture capital, private
credit managers who've been there before, who've seen a moment of stress
and it have helped companies, management teams and whole spaces thrive
despite that. And that to me is a great entry point. That's when you want to
be showing up and investing.
