How Family Offices and Endowments Use Private Markets
The investors who plan in decades already give private markets a substantial place in their portfolios, and those with more resources give them a larger one.
Our Insights are written to help investors understand how private markets work, what to examine and where the risks lie. They are educational and do not recommend any investment.
The investors who plan in decades already give private markets a substantial place in their portfolios, and those with more resources give them a larger one.
A large share of the world's private-market dealmaking still happens in the United States, and almost none of it is available by buying a listed share.
The typical U.S. company that goes public is older than it used to be, and far fewer companies go public at all, so more of a business's growth, if it happens, now happens off the exchange.
A large share of new private-equity capital goes to a small group of experienced managers, and co-investment demand exceeds the supply of invitations.
The gap between stronger and weaker managers is wide, including periods in which weaker groups recorded negative results, which is why manager selection is a discipline rather than a formality.
A U.S. private-market interest is offered under one legal system and received under another. The documents, tax, currency and process in between are the work, and they are not a formality.
A negotiated market now exists for interests that were never meant to be sold on an exchange, and that market has a price.
This article is for general education only and is not investment, legal or tax advice. It does not constitute an offer to sell, or a solicitation of an offer to buy, any security or investment product. Any investment opportunity, if and when available, will be offered only privately, to eligible investors, by means of offering documents provided directly to them. Facts are attributed to cited sources; opinions are those of OPPORTUNITAS; hypothetical examples are illustrative only and do not represent any actual transaction or result. OPPORTUNITAS does not currently offer funds, allocations, co-investments or secondary interests through this website.