The number of publicly listed U.S. companies has dropped 41 percent in the past 20 years, while private-equity backed companies have grown from a few hundred in the early 1990s to almost 8,000 today, according to a report by Artivest.
Reasons for this trend are two-fold, and stem from both headwinds in public markets and tailwinds in private markets.
The market cap of private markets has grown substantially since the industry’s birth. This has created a significant investment opportunity and is no longer a niche category for institutional or ultra-high-net-worth investors. Permanent structural advantages exist for private companies and their investment managers compared to public peers.
To read the full report, click here.