Neuberger Berman

After a stellar two years for private equity, the global market stalled in 2023 amidst challenging conditions. The switch called for agility, with Neuberger Berman finding other ways to get deals going that put distributions in the hands of investors.

After a “frenzy” in the pre-pandemic era, markets have calmed down significantly for private equity investment teams. There are opportunities, however, especially for management teams with patience and a little bit of nous.

Stubborn inflation is forcing central banks around the world to recalibrate, according to Neuberger Berman. Shorter durations remain du jour while yields are strong, but hedging against monetary easing (especially in the US) could be savvy.

The inflationary cycle is at a tipping point both in Europe and the US as central governments sweat the lagged effect of rate rises on inflation. For investors, this only inflates the value of quality issuers according to Neuberger Berman.

Amidst a tough environment for fixed income, agency mortgage-backed securities are one of Neuberger Berman’s highest conviction areas of relative value in the asset class.

A data dependent Fed will eventually need to acknowledge signs of a strengthening global economy, says Neuberger Berman. Bolts of information that sway the central bank will continue to keep market watchers on tenterhooks.

Did one of the most widely forecast recessions just fail to materialise, Neuberger Berman asks, or are we entering a false dawn that could see investors trip over themselves to entertain more risk than is prudent?

The rate hiking cycle may be reaching its zenith, with inflation showing signs of a plateau. The next few months will be pivotal, Neuberger Berman says, which means accounting for two-way risk is crucial.

There is a hidden bifurcation in the S&P 500 that retail investors may not be seeing, but it has private investment manager Neuberger Berman showing a degree of caution.

The structural advantages of private equity span every phase of the investment process, Ng told a room full of advisers and associates. During the buy, the hold and the sell, he said, PE outpoints traditional public market offerings.