TLDR:
- MSCI predicts private market liquidity challenges to persist in Q2
- Private equity distributions in Q1 were significantly below average
The private equity industry is facing ongoing liquidity challenges, with research giant MSCI predicting a decrease in distributions in the second quarter. According to MSCI, private equity distributions in the first quarter of the year were only 8.7% of valuation, a significant drop from the average rate of 23.5% seen from 2015 to 2019. This decline from the previous quarter has raised concerns about the industry’s ability to rebound in the second quarter. Asset owners are closely watching to see if distributions will pick up or if sluggishness will continue.
MSCI’s early indicators suggest that private markets will continue to face liquidity issues, posing challenges for investors and asset managers in the coming months.
