In the past decade, private investments exploded from $4 trillion to $14 trillion.
Primarily led by institutional capital, investors poured money into private markets in their search for differentiated returns and alpha generation.
This makes sense as alternative investments have consistently outperformed global public markets on 10-, 15-, and 20-year time horizons.
As more companies stay private for longer, a portfolio limited to public companies inevitably will miss market opportunities.
While private markets offer advantages of broader economic exposure, diversification and alpha generation, it is important to understand their differences from public markets.
Organizations:
Bain, Private