How Trump's Tariffs Are Impacting Private Markets

Key Points:

• M&A and IPO activity showed strong momentum at the end of 2024, but rising uncertainty has slowed progress.

• Trump's short-lived tariffs caused widespread volatility in public markets, prompting fears of a US recession.

• Private markets are less immediately impacted due to:

  • Absence of real-time pricing mechanisms.

  • Lower sensitivity to short-term investor sentiment compared to public markets.

• Current caution reflects uncertainty around costs, investment appetite, and wealth outlook.

• The real economy has yet to reflect the market turmoil — the full impact will take time to emerge.

• Investors in private markets are advised to maintain patience and avoid reacting to short-term behavioural swings.

Read the full article from Elkstone’s Chief Investment Officer, Karl Rogers, on the The Currency.