When does tech become cheap enough that an investor who had previously shunned the space altogether starts to say, "sure, maybe I'll give that a try."
Well, according to Mathieu Chabran, the co-founder of Tikehau Capital, a nearly $40 billion European-based alternatives firm, that time may be now – or at least soon.
"That market repricing has happened, for the time being, very much in the public market," said Chabran in an interview for the Delivering Alpha Newsletter. "It's starting to transition into the private market from what we're hearing."
That caveat – "from what we're hearing" – is because Chabran had previously described what was going on with tech valuations as a "bonanza." As a result, he has completely avoided the area entirely, as others piled in amid a prevailing FOMO mentality.
Given the recent selloff, Chabran may be seeing more possibilities.
"We prefer a market that is repriced by 75 percent – for some [companies] than what [they were] only six months ago," said Chabran. "And again, having some bespoke pool of capital, we certainly provide great opportunity in a market that is trying to find itis equilibrium."
One example he gave was financial technology. Having raised a lot of dedicated capital for financial services, Chabran said he can't ignore the growing pocket within that space, which is "FinTech."
"We're coming to a rebalancing of some excesses that we had seen, you know, in this very particular space of the market," he said.
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