Fund Managers Split on Public vs Private Market Downturn Play — SkimNews
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- Renuka Ramnath (Founder, MD and CEO of Multiples Alternate Asset Management) argued private markets are a "safe haven" during asset bubble crashes because PE investors sit on boards with affirmative clauses to control cash usage and steer companies through downturns.
- Nilesh Shah (MD of Kotak Mahindra Asset Management Company) countered that the post-bubble period is when public markets deliver "unparalleled wealth creation," noting public investors liquidate portfolios cheaply while promoters refuse to sell companies at a discount.
- Oisharya Das, CEO of Kotak Private Banking, said private market growth is giving India's wealth creators a broader opportunity set while making allocation decisions more nuanced.
- Ramnath recommended investors shifting from a 100% public equity portfolio allocate up to 30% to private markets over a five-to-seven-year horizon.
- Ramnath and Shah agreed investors should stop treating public and private markets as an "either/or" choice, stressing diversification across asset classes despite their opposing crisis strategies.
Why it matters: For India's HNI investors, the panel surfaced a concrete allocation framework: Ramnath recommends shifting from a 100% public equity portfolio to as much as 30% in private markets over five to seven years. Both managers landed on the same answer—diversify across asset classes rather than picking one side.
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