Despite not yet exhibiting the same drop as public markets, private investment prices are anticipated to do so. Some investors, as well as their boards, may reconsider how they invest in private markets if those valuations decline.
Read more: Are the private markets at a tipping point?
“The need for professionalism has never been more critical,” CAIA’s report said. “Generational headwinds in capital market expectations, inflation, and interest rates combined with a voracious appetite for exposure to less liquid, more complex, idiosyncratic asset classes and strategies are raising the bar for professionals in all corners of our industry.”
The new CAIA set of principles states that alternative professionals must regard investors as true partners, treat liquidity as a feature, and customize sustainability initiatives to clients.
By providing personnel with the right training and credentials and ensuring that customers are positioned adequately for the market headwinds they are facing, Bowman said CAIA hopes to encourage the alternatives investing industry to step up its game.
