The Private Market Opportunity
Tremendous opportunities have emerged in private markets, as fewer companies are going public. ¹
These companies are a sample representation of the opportunity set in the private markets.
Published on May 28, 2019, Updated July, 16, 2020
Participate in Private Markets with Private Equity
Private equity is an established asset class, that continues to meet investor expectations.
$4.11 Tn
AuM as of June 2019. ²
$495 Bn
Capital distributed by fund managers to investors in 2018.
86%
of PE investors plan
to increase or maintain their commitment in the longer term. ⁴
The Private Company Universe
There is tremendous opportunity in the private markets due to the fact that fewer companies are going public. Private companies are skipping public markets entirely or going public much later as matured businesses, and the majority of their growth is occurring in a private format.
The majority of a company's growth occurs in a private format.
Private companies are skipping public markets entirely or going public much later as matured businesses.
The average age of a company at IPO has nearly doubled since 1980: 6 years old in 1980 and 10 years old in 2019 at IPO.
https://site.warrington.ufl.edu/ritter/files/2018/07/IPOs2017Age.pdf
Median age for tech companies going public in 1999 was 4 years, respectively, compared with 12 years in 2018.
Median annual sales, meanwhile, were about $12 million then, compared with $173.6 million last year at IPO .
https://www.wsj.com/articles/the-2019-ipo-frenzy-is-different-from-1999-really-11553918401
46%
Decline in the number of US publicly traded companies since the 1997 peak
Cambridge Associates November 2017, World Bank 2018.
98%
of businesses with ≥ $10M in sales are not publicly companies in the USA
https://www.naics.com/custom-market-analysis-profiles/
https://site.warrington.ufl.edu/ritter/files/Listed_19802019.pdf
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