WeWork’s failed IPO shows the danger of allocating to private equity

Investors fearful of higher geopolitical risk and lower economic growth may be making a mistake if they consider private assets as the best way to generate returns.

At the end of September, Schroders released the findings of its third annual survey exploring the key concerns, return expectations and thoughts on allocation of 650 of the world’s largest end investors – including pension funds, insurance companies, endowments and foundations – together responsible for $25.4 trillion of assets.

It’s a troubling read.

Fear is overtaking greed. Investors are now much less concerned about rising rates and monetary policy tapering and more about a global economic slowdown and in particular about geopolitics.

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