Скачать или смотреть Good companies go private, loss-makers go public

Once the domain of institutional investors, private market investing is going mainstream and may even reach a value of $30 trillion in the years ahead. Urs Wietlisbach, Co-founder at Partners Group, views private markets as the new traditional asset class and believes investors can find better opportunities in private markets, not public.

“Good companies go private because it’s much more efficient to run a company and not-so-good companies, loss-making companies, go to the market.”
He points out that many recent IPOs have been loss-makers, such as Rivian or Doordash.

According to Wietlisbach, the investment space has become much more dynamic. Where once, deals might take 6-9 months to finalise and managers could take a more passive approach, today’s private market investors are required to be proactive and move quickly on opportunities with deals taking 6 weeks.

In this edition of Expert Insights, Wietlisbach discusses the changing role of private markets, the outlook and the challenges for investors in this space.

Key take-outs:

Private markets are typically more efficient as they require less compliance and administration compared to public markets. It has become the new traditional asset class.

The rapid growth of this asset class may see it reach $30 trillion in assets under management in the future.

The rapid growth of this asset class requires investors to be highly proactive and rapid in transactions compared to a more passive approach in the past.