Over the past 30 years, public market regulations have made it progressively more difficult and expensive to operate as a publicly traded company. Meanwhile, rule changes in the private markets have allowed more investors into private investments.
We have observed the following:
• Companies have stayed private for longer — or have chosen not go public at all
• Private lenders have led the way in funding America’s mid-size companies — the heartbeat of the U.S. economy
While public markets can offer daily liquidity and must adhere to more stringent reporting requirements, data shows that the use of private markets investments, including private credit, private equity and private real assets, can enhance portfolios with potentially better returns for lower volatility relative to the public markets.
Here are 5 charts to set you on your journey.
01
Private markets have historically offered investors better risk-adjusted returns1
02
Consistent outperformance in private equity has led to outsized returns2
03
Private credit has consistently offered durable income at a premium3
04
Private market asset classes outperform public market equivalents consistently4
05
Private markets can enhance a portfolio’s risk-adjusted return5
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