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Private markets are switching roles with public markets in financing the real economy, says Partners Group
Private markets are overtaking public markets in financing the real economy, in a role reversal that is expected to fundamentally reshape the private markets industry, according to a new white paper from Partners Group.
The paper, titled The New Traditional Asset Class: How Private and Public Markets Have Changed Roles in Financing the Real Economy and What This Means for the Future, explains that in an increasingly challenging and competitive business environment, active private markets firms will need to more closely resemble industrial groups than financial services businesses. Steffen Meister, executive chairman of the board of directors at Partners Group, says active and passive investment distinctions will need to be made in the private markets firms in the future, as they currently are in public markets — albeit with a different definition of active and passive. Truly active private markets firms that combine scale of resources with an industrial-style trans