Real Estate Investing

Why investors are choosing the private markets

“In the year 2000, there were 8,000 publicly traded stocks, and today there’s around 3,700,” Mitch Reiner, founding partner at Altera Investments, told US News and World Report. That’s nearly a 50% decline in public investment options in just over 20 years. Meanwhile, according to McKinsey’s Private Markets Annual Review, private market assets under management grew 170% within the last decade.

US Private Equity Index boasts a 10.48% 20-year return, while the S&P 500 only managed 5.91% over those same two decades. These results have led investors to pay more attention to the private market.

And again, private market investments have outperformed public assets considerably. Over the past 15 years, private equity has marked 14% annualized returns, while the S&P 500 posted 9.3%, the Russell 3000 returned 10%, and MSCI World delivered 7.2%.
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