“Technology, while still an incredibly powerful agent of change in the global economy, now faces more valuation and regulatory headwinds than in the past”
Tech valuations need to adjust to “the new reality of a more disciplined approach to this asset class”, global investment Goliath KKR warned in a 2019 outlook published today, saying it expects greater regulatory oversight, tougher earnings comparisons and ongoing trade friction to dampen valuations.
The note comes after years of red hot technology markets, with startups snapped up at high valuations and eye-watering IPOs.
British companies have been real beneficiaries of this environment, with tech firm sales, IPOs and mergers in 2018 setting a record for the country of $40 billion – the highest in Europe.
2019 Tech Valuations: Headwinds Proliferate
KKR manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit.