The hard landing is here. It’s just not in publicly traded companies

  • 📰 dallasnews
  • ⏱ Reading Time:
  • 48 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 71%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Executive Director of the HMTF Texas Private Equity Center says that as market analysts continue to argue about whether the US economy is headed for a soft...

The seal of the Board of Governors of the United States Federal Reserve System is displayed in the ground at the Marriner S. Eccles Federal Reserve Board Building in Washington, Feb. 5, 2018.Market analysts continue to argue about whether the U.S. economy is headed for a soft landing, hard landing or no landing. Well, the hard landing is already here, it’s just in private markets.

VC investments have fallen as well. In the last quarter of 2021, there were 4,875 VC investments totaling $97.5 billion. In the second quarter of this year, the totals had dropped to 3,108 and $55.6 billion — declines of 36% and 43%, respectively.The U.S. private equity market conditions have been affected similarly. In 2021, for example, there were 1,893 PE-backed company sales totaling $828 billion, and in the first half of 2024 those had declined to 212 exits totaling $141.4 billion.

The Fed’s decision to lower rates this month may increase private company values marginally. Interest rates will, however, remain higher than they were two years ago for the foreseeable future. Private company owners, including VC and PE firms, will have to adjust to higher rates, lower returns, and difficult company sale conditions — all of which will initially result in fewer investments in emerging companies, reduced innovation and less hiring.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 18. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines