Goldman Sachs: Private Markets Are at an Inflection Point

Goldman Sachs' Pete Lyon and Michael Brandmeyer noted that private markets have stagnated since interest rates rose in 2022, but continued economic growth, improved liquidity, and AI-driven innovation are expected to drive a rebound. Despite extended holding periods in private equity and mixed performance in private credit funds, the pair remain cautiously optimistic, expecting distribution rates to gradually recover to 15%-20%, and transaction activity to exceed the 2021 peak within two to three years.