Smart Ways To Access Private Capital Markets
October 31, 2019 | Jeff Schlegel | Fa-mag.com
The public capital markets aren’t what they used to be. Many young companies are staying private for longer time periods rather than rushing to do an initial public offering, and private capital fundraising has seen positive compound annual growth rates this decade at a time when the amount of public capital raised has exhibited negative growth rates.
Investors looking for alternative sources of returns can turn to the private equity and private credit markets, but they and their financial advisors need to understand the pros and cons of these types of investments.
“More advisors and their clients are considering the private capital markets for the first time, and we’ve seen an increase this year,” said Nick Veronis, co-founder and managing partner of research and due diligence at iCapital Network, whose platform for alternative investments includes private equity and hedge funds. He spoke during a panel discussion at this week’s Inside Alternatives & Asset Allocation conference hosted by Financial Advisor and Private Wealth magazines in Philadelphia.
