BeBeez Trading Floor roundup with eToro support about the performances of private capital firms listed on global exchanges.
Geopolitical volatility and inflationary pressures to which central banks are responding by tightening interest rates impacted on private capital securities that BeBeez and eToro monitor for Trading Floor.
On 10 September, Thursday, the European Central Bank decided to raise official interest rates by 25 basis points, in response to growing upward pressure on prices of energy costs, particularly gas. This move further fuelled expectations of a similar move by the Federal Reserve at the next FOMC meeting.
A general rise in interest rates heralds an economic slowdown that may reduce demand for financing from private credit funds, whilst jeopardising credit quality and depressing the NAV of private equity investors’ portfolios.
However, Frankfrut-listed Mutares (+4.2%) fetched an undisclosed capital gain from the successful sale of NEM Energy to Hyundai Heavy Industries Power Systems (press release). The firm also announced strategic acquisitions such as the Terpene Ingredients unit of Symrise (press release).
Concerns over persistently high interest rates and the decision by some companies in the sector to impose temporary limits on redemptions by retail investors triggered a chain reaction of selling across the entire sector and affected NYSE-listed private capital firmsBlue Owl Capital (-10.1%),Carlyle (-9.9%), TPG (-9.4%), and Hamilton Lane(-6.9%).
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