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Key Takeaways
- More growth is occurring before the IPO: Many leading companies are staying private longer, extending the period during which investors can participate in their growth and value creation before they list on public markets
- The public-private balance has shifted: Recent years have seen post-IPO performance lag broader equity markets, while an increasing share of company expansion and return potential has remained in private markets.
- A new generation of scaled private companies is emerging: Today's late-stage private companies often combine the size and maturity of public businesses with growth rates traditionally associated with earlier-stage innovators.
- Artificial intelligence is accelerating value creation: AI-driven businesses are reaching unprecedented levels of scale and revenue growth while still private, helping fuel a rapidly expanding opportunity set for growth investors.
- Access and selectivity matter more: Competition for leading private opportunities remains intense, making active management, differentiated sourcing, and disciplined underwriting critical.
Today's most transformative companies are creating more value before they ever reach a public exchange. Discover how private markets have become an increasingly important source of growth, why late-stage private companies look different than they did a decade ago, and what investors should consider when evaluating the opportunity set.
Risk Considerations
Alternative investments are intended for qualified investors only. Alternative investments, including private equity funds, provide limited liquidity and include, among other things, the risks inherent in investing in securities and using leverage. An investment in an alternative investment fund can be speculative and should not constitute a complete investment program.
Private equity funds will typically invest in securities, instruments and assets that are not, and are not expected to become, publicly traded and therefore may require a substantial length of time to realize a return or fully liquidate. There can be no assurance that any such fund will be able to identify, choose, make or realize investments of the type targeted for their fund, or that such fund will be able to invest fully its committed capital. There can be no assurance that a fund will be able to generate returns for its investors or that returns will be commensurate with the risks of the investments within such fund’s investment objectives. The business of identifying and structuring investments of the types contemplated by these funds is competitive and involves a high degree of uncertainty. In addition to competition from other investors, the availability of investment opportunities generally will be subject to market conditions as well as, in many cases, the prevailing regulatory or political climate.
All investment involves risk.
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