Private assets investing in cross-border M&A is gaining

Private assets investing in cross-border M&A is gaining traction as currency volatility creates valuation gaps. Investors are capturing returns that exceed public equity ADR performance by 4% annually. Analysts believe this trend might continue if monetary policy divergence between US and EU sustains arbitrage windows. They would also help promote accurate valuations of private credit so that shares of the underlying funds could trade credibly. Nuveen Private Capital, comprising U.S. and European asset managers Churchill Asset Management and Arcmont Asset Management, has entered into a... Analysts note that private assets investing in distressed debt has accelerated since early 2024, capturing 14% returns YTD. With corporate defaults ticking up in the junk bond market, private credit funds are pricing in double-digit returns uncorrelated to equity index performance, offering an alternative to volatile high-yield stock plays.