Investors are leaving private equity and VC funds at a record pace this year, as the era of cheap money screeches to a halt, the Financial Times reports. Some USD 33 bn has fled private funds in 1H 2022, up from USD 19 bn a year before — and at undervalued prices, the FT says, citing financial services firm Jefferies.

Driving the outflows: Some pension funds say their hands are being forced by the decline in the equity markets. Most funds have rules on how much exposure they can have to private markets. Falling valuations in the public markets this year has pushed the private market weightings of some funds over the limit, forcing them to sell stakes to rebalance. Others are concerned about the hangover after two years of manic dealmaking, which could cause liquidity issues and leave some unable to meet future capital calls.

End of an era? The figures suggest we may now be seeing an end to the post-financial crisis rise of buyout firms, VC and real estate funds, as pension and sovereign wealth funds put money back into the public markets.

ALSO WORTH NOTING-

• Could Salik give Gulf IPO boom its second wind? Dubai wants to raise USD 1 bn from the IPO of its road toll system Salik as soon as next month. (Bloomberg)
• Axios is getting new owners: US news outfit Axios has decided to sell itself to US-based conglomerate Cox Media in a transaction valuing it at USD 525 mn. (New York Times)

THE CLOSING BELL-

The EGX30 fell 0.8% at yesterday’s close on turnover of EGP 1.7 bn (52.1% above the 90-day average). Local investors were net buyers. The index is down 15.9% YTD.

In the green: Oriental Weavers (+4.9%), Alexandria Containers and Goods (+4.0%) and Eastern Company (+2.5%).

In the red: Ibnsina Pharma (-4.9%), CIRA (-4.8%) and Fawry (-4.3%).

Major Asian benchmarks are all under selling pressure right now and futures suggest shares in Europe and North America will likely start the day in the red at the opening bell.