Insights from leading custodian State Street on the transformation of private markets. Excerpts: “Private market funds, such as private equity, private credit, real estate & infrastructure, have traditionally been sold to institutional investors. That’s starting to change as institutional flows into private investments plateau, pushing private market funds toward a fresh source of investment: high net-worth investors. In the US alone, the affluent & mass affluent segments control more than $16 trillion investable assets. If private markets capture just 5-10 % of those assets, it will represent between $800 billion & $1.6 trillion in assets under management.”

Further: “Increased access to private market funds comes at an opportune time for individual investors. The public markets are shrinking. Between 1996 & today, the universe of listed companies in the US stock market declined 50%. The entry of abundant new capital in the late-stage venture market has helped organizations stay private longer. It is likely many of the unicorns going public today are already further along their growth trajectory than similar companies that went public a decade or 2 ago.”

The kicker: “Extending the availability of private funds has the potential to be a win-win.” #Inveniam

Read the full post on LinkedIn