The research showed that 59% of respondents are anticipating bringing forward exits in response to the current environment with 20% having extended them and 36% having to redesign or reevaluate them.

When specifically asking asset managers working across private equity, venture capital, real estate, infrastructure and private debt how the current interest rates have impacted their company and asset valuations 95% said they’ve had an impact, with 40% of these saying current interest rates have had a significant impact.

Other issues also had left their mark, with 95% saying that changing political leadership in their home country has had an impact on their company and asset valuations, with 60% of these saying this change has had a significant impact.

Other major issues listed by asset managers as currently impacting their company and asset valuations are rising and falling risk premiums (95%), geopolitical issues (92%) and falling inflation (81%).

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Despite this, none of the asset managers questioned said their organisation’s current valuation cycle would negatively impact their fundraising efforts — instead, according to Ocorion, they generally have a more positive outlook.

69% said that their organisation’s current valuation cycle will have a positive impact on their fundraising efforts, including 7% saying it would be very positive, while 32% said it would have a neutral impact.

Charlotte Cruickshank, global head of fund onboarding and solutions at Ocorian commented: “In today’s economic climate, where interest rates have seen significant adjustments after years of near-zero rates, the industry is navigating a complex exit landscape.

“As with 59% of our survey responses, exits have been brought forward as the cost of debt have soared, reducing the company’s free cash flow and profitability.   The higher cost of capital has also muted enthusiasm for leveraged purchases, leading managers to hold on to assets for longer, waiting for more favourable market conditions or looking for alternative exit strategies.”

However, Charlotte also commented on the optimistic outlook of the market: We’re encouraged by the positive sentiment, clearly even in uncertain economic times there are opportunities to navigate these waters effectively.”