Technology now represents nearly half of the S&P 500, and years of investment into private market technology have added to that exposure. As a result, many investors may have greater concentration than they realize.

In this episode of Insights from the PM's Desk, John Pavelski discusses the importance of private equity sector expertise in today's market. He explores changing investment trends, widening valuation dispersion, and why Pacharbor Capital Group continues to focus on sectors characterized by operational complexity, durable cash flows, and deep domain expertise.

Too much tech? How to find value in the real economy.
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Key takeaways
  • Private market investment trends are shifting: Following several years of elevated technology investment, private equity deployment into the sector has moderated as investors assess an evolving opportunity set.
  • Valuation dispersion across sectors: Real economy sectors such as financial services, energy, and healthcare are trading at materially different valuation multiples than many technology-related sectors.
  • Sector expertise in private equity may matter more: Pacharbor Capital Group continues to focus on industries where operational expertise, regulatory knowledge, and long-standing relationships may support differentiated investment outcomes.
  • Defense is undergoing structural change: Rising global defense spending and the increasing importance of software-enabled capabilities may create opportunities for private equity investors with deep sector experience and differentiated access.
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Go deeper on what technology concentration could mean for portfolios and where Pacharbor Capital Group sees value across aerospace and defense, healthcare, financial services, and industrials.

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Insights from the PM’s Desk is a video series where leaders across our firm share the trends shaping private markets, inviting advisors into the expertise that powers clients’ portfolios.

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Economic and market views and forecasts reflect our judgment as of the date of this video and are subject to change without notice. In particular, forecasts are estimated, based on assumptions, and may change materially as economic and market conditions change. Pacharbor Capital Group has no obligation to provide updates or changes to these forecasts. Certain information contained herein has been obtained from sources prepared by other parties, which in certain cases have not been updated through the date hereof. While such information is believed to be reliable for the purpose used herein, Pacharbor Capital Group and its affiliates assume no responsibility for the accuracy, completeness or fairness of such information. This material should not be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. We are not soliciting any action based on this material. It is general information. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual investors.

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