Advisors weigh PE allocations in face of rising rates
Matthew Rubin of Cary Street Partners and Stephen Kolano of Integrated Partners
If the typical PE firm employs leverage and the cost of borrowing rises, it would make sense that higher interest rates would cut into its returns.
If rates remain high, or climb even higher, should advisors pull the plug on PE? When both legs of the 60/40 portfolio – stocks and bonds, that is – wobbled back in 2022, advisors found refuge in private equity products, whose liquidity is typically more like syrup dripping from a jar than water
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