Private markets. Sounds like a secret club. And in many ways, it is—but today we are going to lift the veil of secrecy and let light in upon the mystery. To help break down this complex topic, we have Senior Portfolio Manager Jordan Strauss and Senior Research Analyst Julian Freeman. Let’s first lay out the basics. Julian, what exactly is meant by private markets investing—and how does it differ from public markets?Private markets (PM) fits within the alternatives asset class.
For many, the private markets asset class represents a road less traveled.* Typically, investors focus on more traditional asset classes, like stocks and bonds, where information is often readily available and digestible, as it can often seem like the path of least resistance. However, of late many large and sophisticated investors have been increasing their capital allocations to private markets for reasons they believe are compelling enough to make it worth taking the risk.
March 8, 2021— Special purpose acquisition companies (SPACs) have been around for decades but gained wide recognition in 2020 as an increasingly popular, alternative method of going public following a surge in initial public offering (IPO) and merger activity. In 2020, 248 new SPACs came to market, encompassing 53% of all IPOs for the year, and raised a cumulative $83 billion—more than five times 2019’s volume (Figure 1).
April 2, 2020—As markets continue to fluctuate, it looks as if no asset classes have been spared the COVID-19-driven price hit. Real estate investment trusts (REITs) have struggled along with the broader equity market, despite having outperformed during past periods of stress, including the market drawdown in 4Q 2018.REITs own, and frequently operate, income-generating real estate.
Angel investing is a proactive way for individuals to invest in private equity—but it’s risky business.
Angel investors are generally high-net-worth individuals who provide seed capital to startup companies.
Successful angel investing requires a high level of involvement and expertise in the industry or fieldwork.
Although it provides investors with diversification and low correlation, angel investing carries high risk.
Angel investors are small-scale venture capitalists.