Private Market Growth Driven by Increased Capital Allocations

In recent years, private markets have experienced significant momentum, driven by increased capital allocations from institutional investors. According to McKenzie and Company, the amount of undeployed private fund capital has reached an impressive $3.7 trillion, highlighting a vast opportunity within the private market sector. Canal Kapor, CEO of Morningstar, emphasizes the significance of Big Data in analyzing both public and private markets, revealing the growing trend of companies remaining private for extended periods rather than opting for initial public offerings (IPOs). This shift is fueled by a surge in private credit from non-traditional lenders, making more investment options available for those typically excluded from such opportunities. Kapor notes that investors are increasingly curious about diversifying their portfolios, as private markets currently offer unique growth potential, despite inherent challenges like reduced liquidity and tax complexities compared to public markets. Moreover, the merging of public and private market analysis adds to the demand for data services as investors seek clarity on how to navigate these evolving landscapes. Furthermore, Kapor discusses the impact of AI technology on the investing landscape, highlighting its role in minimizing friction and streamlining investment processes, ultimately making investing more accessible to a broader audience. Although there is no definitive revolutionary tool yet, the future of investing promises to enhance user experience and tailor investment options, leveraging individual investor preferences. Kapor concludes by asserting the continued lowering of barriers to personalized investing, fostering a more engaged investor base.