The private investment sphere has long been a traditional domain of private equity and venture capital firms. However, in recent years, many institutional and retail investors have increasingly taken an interest in investing in this exciting and promising sector. Many hedge funds are now running a hybrid model where they are investing not only in public markets but also late-stage startups. While this is happening, retail brokers are diversifying their portfolios by investing in small private companies. What is driving this recent phenomenon? Listed below are the key factors that help to shape a new ecosystem of the private investment market.
Timothy Yang, Director of Business Development at DealIndex, says: “The push towards more information transparency, globalization and evolving private company structures mean that the fundamentals of the private market are constantly changing. It is certain that the rise of private investment is here to stay and will increasingly become more open to investors globally.”
Private investment no longer is just within the exclusive domain of traditional private equity and venture capital firms.
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