Private Equity Secondary Markets Demystified
In the last several years, the private equity secondary market has transitioned and the debate around liquidity has continued. Explore different views on the liquidity in the private markets as we study transaction costs and their impact in the secondary markets.
Venture-capital, private market investment continues to grow in lockstep with the decline in the number of companies issuing IPOs. This number has declined by over half since the early 1990’s. Those that do go public have a larger investor base and are fewer in number, leaving a great deal of capital looking for additional investment opportunities. This paper outlines how the decline in IPOs has played a crucial role in the growth of venture capital-backed investments in private markets and how this new asset class presents new opportunities for institutional investors via the Prime Unicorn Index.
About the Index
The Prime Unicorn Index is a modified market cap price return index that measures the share price performance of U.S. private companies valued at $1 billion or more. The price changes of component companies are calculated from publicly available information associated with company transactions, filings, and other disclosures. The index provides empirical data to asset managers and financial advisors interested in tracking today’s private capital markets. The index is designed for use in the creation of financial products and as a performance benchmark.