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Signs point to the U.S. economy being near or in a late (or pre-recession) stage, yet stock market valuations are elevated and inflation is inexplicably soft. We share its outlook for the U.S. and global economies and—in light of stretched valuations, low bond yields, and expected higher volatility—where qualified investors can look for...

Millennials have surpassed the Baby Boomers as the nation’s largest demographic segment. And with more than $30 trillion passing to them through inheritance over the next 30 years, Millennial investors are determined to make an impact and use their wealth to reshape not just markets, but the world. Given that only 28% of ultra-high-net-worth ...

Cryptocurrencies, or digital currencies, have captured the imagination and interest of investors around the world. Three main factors have driven this interest: the role of cryptocurrencies as bold new upstarts in the world of electronic payments; their meteoric rise in value since they were created less than a decade ago; and the perennial search ...

For investors who can withstand the risk, investments made to support climate change and generate competitive returns can be found in the private equity markets—it’s one of the top five ways to adapt your portfolios to climate change and support the Paris Climate Agreement. Another way is to integrate your values with your investments b...

The real estate private equity market has been an attractive asset class with record fundraising market performance and increasing investor allocations. Within real estate investments, the single family rentals (SFR) market has a strong outlook. The highly fragmented SFR market presents an opportunity for real estate funds to leverage its industry ...

While 2018 will have a difficult time living up to 2017’s stellar returns, we believe the markets should still have a more-than-decent showing. Central to this generally optimistic view of the markets is our expectation that the global economy is fairly healthy. Broad-based synchronized growth, which began in 2017, should continue into 2018 a...

The supply-and-demand dynamics are setting up for a very good year for municipal bonds relative to Treasuries. New-issue supply will most likely drop materially from above $400 billion the last two years to below $300 billion, which would be a low supply not seen in over 20 years. Demand will be particularly strong from high net worth individuals t...

Research has shown that demographic trends have important relationships with many economic variables. As a nation’s population ages, the balance of capital tends to shift from debtors to creditors. The supporting data behind the phenomenon and other initial baseline assumptions outlines our capital market return forecasts for approximately 50...

Despite historically low interest rates and increasingly favorable economic conditions, inflation has remained persistently below the Fed’s 2% target for nearly six years. While stubbornly low inflation would have been cause for alarm in the past, few seem to be worried. With other economic indicators headed in a positive direction, the Fed h...

There are currently more than 1,000 cryptocurrencies with a combined market capitalization of over $400 billion dollars. In the grand scheme of things, they represent a relatively small portion of the global economy. However, these alternative, digital currencies continue to generate a significant amount of buzz among curious investors. As an inves...

The Tax Cuts and Jobs Act (TCJA) is here to stay and its provisions change the landscape of the private equity world going forward. The decrease in corporate rates coupled with new net operating loss limitations, corporate alternative minimum tax repeal, and accelerated expenditures will directly impact how the value and price modeling of deals are...

Detailed analyses and quantitative rigor go into every sound investment decision. To make matters more challenging, we are constantly battling our instincts, which can pull us in conflicting directions and get in the way of sound investment discipline. To this end, we must find an equitable balance between the fear that tugs at us when markets are ...

Operational improvements are a key lever for achieving value creation after a deal closes. There are three critical ways private equity firms can both protect and grow value through operations. One way is to lead differently, beginning with recognizing that the due diligence process can cause employees to be apprehensive. When leaders understand an...

The 2017 Tax Cuts and Jobs Act significantly affects the ability of the managers of investment funds to receive long-term capital gains with respect to their carried interest. Under current law, the manager of an investment fund can receive a “profits interest” (also known as a “carried interest” or a “promoted interes...

The 13th edition of the World Economic Forum's Global Risks Report, undertaken with Marsh & McLennan Companies, examines the evolving macro-level risk landscape and highlights the systematic threats that may disrupt expectations. A more rigorous exploration of potential sources of value destruction, greater strategic agility to match a rapi...