Skip to main content
- About Us
- My Account
The views expressed are those of the author at the time of writing. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional, institutional, or accredited investors only.
The private equity market has experienced explosive growth in recent decades and appears poised for more in coming years. The market has also been reshaped by changes in how private companies fund their growth, which has altered the path to the public market. This evolution in market structure is, in my view, creating a more integrated “ecosystem” of public and private companies.
The implications of these changes are enormous, given the role that private equity has come to play in portfolios of institutional investors (e.g., a 20% allocation for the average large endowment1) as they face high return hurdles and seek to outperform public equity and pursue an illiquidity premium. With nearly half of investors planning to increase their private equity allocations,2 I believe the shifting market landscape requires a more holistic view of the equity opportunity set and a thoughtful approach to portfolio implementation.
In this paper, I’ll explain what’s driving change in the private markets and propose a set of portfolio-construction priorities, including ideas related to the late-stage growth category of the private market, thematic investing, and manager selection.
There are a number of fascinating developments taking place in equity markets and company life cycles, but let me focus on three in particular:
1. There are fewer public companies and more private companies
Since the mid-1990s, the number of exchange-listed US companies has been nearly halved, from just over 8,000 to roughly 4,200. We can see the impact across the…
To read more, please click the download link below.
1NACUBO, 2020; based on endowments greater than US$2 billion | 2Casey Quirk CIO Sentiment Survey, May 2021
WellSaid: Partnering with climate founders
Wellington head of private climate Greg Wasserman discusses his team's approach to helping private companies progress along their growth journey
No more free lunch: Impact of higher interest rates on private equity strategies
We explain what the direct and indirect rate exposure of buyouts, venture capital, growth equity, secondaries, and fund-of-funds mean for investors.
Five key ESG topics for private companies in 2024
See where our ESG for Private Investments team is focusing to minimize investment risk and maximize company value in 2024 and beyond.
Alternative Investment Outlook
This collection provides timely ideas across the spectrum of alternative investments -- including hedge funds, private equity, and private credit.
Decoding impact expectations: best practices for impact investors and companies
We share three recommendations each for impact investors and companies to help them better understand and manage each other's expectations.
WellSaid: Partnering with portfolio companies
Co-head of private investing Michael Carmen explores how we partner with portfolio companies to help them along the "last mile from the private market to the public market" including on key ESG issues for private companies to consider.
Focus on what you can control: Five alternative investment ideas for an uncertain world
Multi-Asset Strategists Nick Samouilhan and Adam Berger explain how a variety of alternative investments, including select hedge funds and private credit, could help allocators reduce the importance of the economic cycle to their portfolio results.
Opportunity in disguise: Why bad news may be good for alternatives in 2023
Multi-Asset Strategists Nick Samouilhan and Adam Berger explain how alternative investments may help allocators make tailwinds out of macro and market headwinds in the year ahead.
The critical role of ESG for private companies