(Bloomberg) -- Investors should brace for a slowdown in deal activity in the fastest growing private companies, Blackstone Inc. President Jon Gray said.
“The private markets and public markets clearly correlate,” Gray said in an interview on Bloomberg TV on Thursday. “So you could see less companies being sold as people reprice assets a little bit.”
This is probably most pronounced “in technology and growth areas where public markets have pulled back,” he said. “On some of the rounds of private companies, fast growing companies, there’ll be a reset that takes a little bit of time.”
Investors sold off tech stocks in recent days as they assessed the effects of the central bank pulling back on support for markets. The Federal Reserve has signaled it will soon raise interest rates to combat inflation.
Gray cautioned that not all markets have pulled back. Parts of the real estate markets have “strong fundamentals” and the firm is seeing “robust sales.”
Some sellers are looking to dispose of properties because of the prospect of higher rates, he said.
The world’s largest asset manager reported Thursday that it hauled in a record pile of new cash, taking its biggest quarterly leap yet toward a goal of managing $1 trillion.
The cash surge of $155 billion in the fourth quarter put the firm years ahead of schedule in hitting its asset target by 2026.
©2022 Bloomberg L.P.
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