Evolving Private Market Landscape: The Institutional Shift from Public to Private Markets

November 05, 2018

2018 Investment Symposium flash talk by Derek Schmidt, CFA, CAIA

Investors are adapting to an investment landscape altered by a 46% decline in the number of publicly traded companies and the emergence of less expensive passive investment opportunities. These changes have shifted record levels of capital into private equity as investors have pursued attractive investment opportunities in small companies. We will discuss how the private equity market has responded to increased investor demand and will attempt to identify where institutional allocations may be headed and where to find the best opportunities for returns within this increasingly diversified private market.

A summary of this flash talk can be downloaded here.

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Related Content

This chart description is for illustrative purposes only and its accuracy cannot be guaranteed. Please see full disclosures at end of PDF. General description: Line chart showing down rounds in venture capital-backed companies. Chart subtitle: Over the last two years, there has been a noticeable increase in down rounds for venture-backed companies. Chart source: Source: Cooley GO as of September 30, 2023 Chart visual description: Y-axis labeled “Down Rounds as a % of Total” and ranges from 0% to 30%. X-axis labeled in quarterly increments, from 1Q21 through 3Q23. Down Rounds (% of Total) plotted in dark orange; average plotted in dotted light orange. Chart data description: Average at 9.6%. 1Q21 at 5.7%. 2Q21 at 2.7%. 3Q21 at 2.3%. 4Q21 at 0.4% (trough for period shown). 1Q22 at 3.0%. 2Q22 at 4.1%. 3Q22 at 10.2%. 4Q22 at 14.1%. 1Q23 at 15.5%. 2Q23 at 21.2%. 3Q23 at 26.8%. End chart description. See disclosures at end of document.

02.06.2024

Another (Down) Round

Venture-backed companies tend to be nascent and typically deploy investment capital in an effort to drive revenue expansion, often to…

01.26.2024

2024 Market Preview Video

This video is a recording of a live webinar held January 25 by Marquette’s research team analyzing 2023 across the…

01.25.2024

2024 Market Preview: A 40 Degree Day

A former colleague once described his brother-in-law to me as a “40 degree day.” The puzzled look on my face…

12.21.2023

We’re Not So Different, High Yield Bonds and Leveraged Loans

Late last year we authored an article detailing the growing differences between the high yield and leveraged…

This chart description is for illustrative purposes only and its accuracy cannot be guaranteed. Please see full disclosures at end of PDF document in the web post. General description: Column chart showing precent of U.S. venture funding going to AI-related startups. Chart subtitle: Venture capital money has poured into companies tied to artificial intelligence since the start of the year due to advances in the field. Chart source: Crunchbase as of June 30, 2023. Chart visual description: Y-axis labeled “Percent of U.S. Venture Funding Going to AI.-Related Startups” and ranges from 0% to 30%. X-axis labels six columns by year, from 2018 through 2023 (1Q-2Q). Each column is plotted in a shade of purple, from light to dark. Chart data description: 2018: 11%. 2019: 15%. 2020: 12%. 2021: 13%. 2022: 11%. 2023 (1Q-2Q): 26%. End chart description. See disclosures at end of document.

12.19.2023

How to Appraise the AI Craze

Even the most casual observers of market dynamics are likely aware that investor interest in artificial intelligence (AI) has surged…

10.13.2023

3Q 2023 Market Insights Video

This video is a recording of a live webinar held on October 26 by Marquette’s research team, featuring in-depth analysis…

More articles

Subscribe to Research Email Alerts

Research Email Alert Subscription

Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.

We respect your privacy. We will never share or sell your information.

Thank You

We appreciate your interest in Marquette Associates.

If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.

Contact Us >