We believe investments in private equity may be less affected by a tougher U.S. tariff regime than the overall economy.

While policy negotiations remain fluid, we believe private equity (PE) portfolios may offer some welcome insulation from tougher tariffs: This is because PE managers have historically had less exposure to economic sectors that rely heavily on tangible imports—such as industrials, materials and consumer goods—and greater exposure to sectors and industries where innovation and intellectual capital are the primary drivers of value, such as information technology (IT), healthcare and financial services.

For more insights on the potential impact of tariffs on PE, click here.