Fireside Chat, Interview, Conference Presentation
Jean Salata, CEO and Founding Partner of Baring Private Equity Asia
- Investment strategies will likely rely on existing management relationships and deep sector conviction to overcome inability to conduct on-site due diligence.
- Focus for new opportunities is directed toward healthcare, education, IT, IT services, software, and business services based on historical experience and current confidence.
- Future growth may face challenges in developing new management relationships if interactions remain exclusively virtual.
- Increased reliance on virtual meetings is projected to reduce travel frequency and lower travel costs over the future period.
- The S&P 500 is projected to be higher one year from now as interest rates nearing zero force capital into alternative assets.
- Current market valuations are expected to be sustained due to a discounting mechanism utilizing very low discount rates.
- Geopolitical relations between China and the U.S. are projected to deteriorate further over the next year.
- Political relations between China and the U.S. are not expected to improve in the near term.
- A complete economic separation or Cold War between China and the U.S. is considered unlikely due to the near-impossibility of severing economic connections.
- Long-term compounding is projected to become massive for patient investors over a 20 to 25-year timeframe.