Why private markets will expand faster than their public counterparts
Private markets are growing at twice the rate of the traditional markets
In recent years, an interesting trend has appeared. Whereas earlier the public markets shouldered the responsibility for raising capital and liquidity for businesses, in recent times the private markets have taken the lead.
Increasingly larger sums have been coming the way of private markets from diverse, ‘alternative’ sources such as hedge funds, wealth funds, corporate investors, venture capitalists, PE players and mutual funds.
Why private is more attractive
- Lesser regulatory compliance, better control
- With new sources of funds now available, the IPO is not the only route for financing
- Companies are therefore staying private for longer
- Investors are therefore able to hold onto the high growth phase for longer
- Investors are now international
- With the increasing trend towards disruption, investors are willing to shoulder early stage losses in return for the longer term gains flowing from market leadership
The bottom line
“Private capital transactions have increasingly become critical in helping businesses to drive innovation, scale internationally and fund strategic ambitions, while providing financial flexibility to founders and shareholders.”
Latest Alternative Investment News
Grayscale Investments, the largest digital asset manager globally, has filed a suit against the SEC for rejecting its application to convert the Grayscale Bitcoin Trust into a spot bitcoin ETF….
Twelve has raised a $130 million Series B round to scale up its carbon transformation technology that converts captured CO2 into products traditionally made from fossil fuels. The firm’s technology…
FTX, the crypto platform owned by billionaire Sam Bankman-Fried, has scotched media reports that it was pursuing a deal to acquire commission-free trading app Robinhood (NASDAQ: HOOD). Bloomberg said Monday…
Alternative Investments/Digital: Amidst A Crypto Winter, 21Shares Launches The World’s Cheapest Physically Backed Bitcoin ETP
21Shares AG has launched a bitcoin ETP tailor-made for today’s crypto market, one that has been mauled by rampaging bears and gripped by a “crypto winter.” The 21Shares Bitcoin Core…