Private Markets:
Late stage VC / Pre-IPO investments
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^https://www.spglobal.com/en/research-insights/market-insights/private-markets#:~:text=The%20private%20capital%20market%20has,growth%20rate%20of%20over%2012%25.
*https://www.pwc.com/gx/en/news-room/press-releases/2025/pwc-2025-global-asset-wealth-management-report.html
(1) https://www.cbinsights.com/research-unicorn-companies
(2) https://www.mckinsey.com/industries/private-capital/our-insights/global-private-markets-report
Growth in Private Markets is due to a wide variety of factors, and in no small measure due to the following:
- Short-Termism and the cost of going public - focus on quarterly earnings rather than long term growth - means staying private for longer.
- Unlocking value for investors who have been shut out due to high minimum investment amounts and exclusivity.
- Venture-backed technology companies are reaching $1B and even $10B valuations before they go public. In 1999, US technology companies typically went public after 4 years. Today, the average technology company IPOs after 10+ years.
The private capital market has experienced remarkable growth over the past two decades. According to McKinsey, global private capital assets under management (AUM) reached approximately $22 trillion in 2024, compared to $7 trillion in 2018, representing a compound annual growth rate of over 26%.^