The private equity sector boomed in the last decade thanks to a low-interest-rate environment. However, it remains to be seen if the strategy offers the best risk-return ratios in the current environment, noted Allen Kuo, group deputy chief investment officer of the Singapore-based insurer Singlife in a recent conversation with DealStreetAsia.
Kuo noted that interest rates have risen and after a market correction, some public equities now look more appealing than private markets. Moreover, strategies such as private credit are also offering attractive yields. Nevertheless, Singlife Investment Office continues to evaluate investments in private capital funds, he said.