What goes up, must come down. Private markets ready for impact., Matthew Pelkey

Private equity and venture capital funds are preparing for a downturn in the economy. This is impacting investments with higher valuations as investors start being more selective with who they are putting capital into and are planning on holding investments longer to weather any recession. Technology is poised to benefit as investors look to reduce risk. So are financial services and energy/natural resources. Meanwhile industries such as real estate, media, and healthcare/biotech will likely see a decrease in investment.

Technologies of greatest interest? 5G, AI, IOT, Robotics, and extended reality.

These are key factors to consider for entrepreneurs as they look to start, grow and exit from a business through challenging economic conditions.

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Ten years into a bull market, economists and analysts have been biting their nails in anticipation of the economic indicator that will flash with finality “Recession.” Between slowing global GDP, decreasing global corporate capex, deflating U.S. manufacturing reports, Fed rate cuts and inverted yield curves, there has been no shortage of developments to mine for economic forecasts. Predictions about when a bear market might begin have been replaced by mobilizing for the eventuality of one. What goes up, must come down.

https://www.bdo.com/insights/industries/private-equity/us-private-capital-outlook-2020