The Principal Investor Perspectives series highlights the latest developments in the global economy, financial markets and the political arena – sharing market views and compelling investment insights from the perspective of a principal investor.

The latest issue first looks at the macro-economic environment, with our economists concluding that US exceptionalism is fading but activity in Europe and parts of Asia is reviving, providing a robust outlook for the global economy and corporate results. A major risk stems from the increasing political polarization at present, as extreme or seesaw election outcomes create greater political uncertainty for businesses and investors.

This edition of Principal Investor Perspectives also takes a closer look at private equity and the liquidity crunch that the industry is experiencing at present, with a record amount of unrealized value held in portfolios. It explains that with both LPs and GPs seeking ways to raise liquidity, secondaries have emerged as an essential tool.