How private markets are navigating new risk landscapes

Summary

Private markets have navigated one of the most challenging periods in recent history. Over the past two years, firms have adjusted to slower fundraising, muted deal activity, and persistent macro volatility. In response, managers have broadened their investor base across geographies and investor types, explored retail and private wealth channels, and adopted more flexible fund structures to meet rising liquidity demands. At the same time, asset classes like credit and secondaries have surged, helping sustain deal flow in an otherwise constrained environment.

Overlaying these market dynamics is a shifting macroeconomic backdrop, shaped by interest rate volatility, inflation trends, geopolitical tensions, and uncertainty around US policy outcomes. These forces are reshaping how managers evaluate interest rate risk, manage FX exposures, and plan for liquidity across fund structures.

This report, produced by Private Equity Wire in partnership with Validus Risk Management, examines how current macro conditions are influencing private markets risk. It covers interest rate and FX risks, the rise of multi-currency fund structures, evolving liquidity management solutions, and how technology is transforming risk operations. The analysis combines insights from senior Validus experts, a case perspective from Oaktree Capital Management, and data from 120+ fund managers surveyed in Private Equity Wire’s Q3 GP study.