Fascinating article in the WSJ this week on how hedge funds are stepping up their investment into private companies. Excerpts: “Fund managers say that they are being selective about which companies they back & that liquidity in secondary markets has increased in recent years. Managers and their advisers also say circumstances are different than those leading into 2008. Managers say they generally are more upfront about how much they intend to have in illiquid private investments and regularly communicate about those wagers with clients. Funds recently have been structured from the outset to accommodate the longer time it can take to exit private investments.”

This is a trend that will continue to grow. The key differentiator between public & private markets is data. Inveniam.io is built to deliver price discovery in illiquid assets. To do this we must create trust regarding the condition or state of the asset between economic actors. 3rd-party independent and verifiable marks also lead to better accounting treatment & enhanced liquidity. As the WSJ says “There is huge demand,” for private market assets. “They believe in the ability to drive returns & also mitigate some of the risks of public markets.”

Read the full post on LinkedIn