From the Consultants’ Desk: Trends in the Private Equity Market
Investment portfolio consultants Kevin McCullough and Mark Cintolo discuss current developments in the private equity markets.
- While 2021 was a record year for private equity market activity, that trend has reversed in 2022.
- Volatile equity market conditions have disrupted plans for privately held companies to go public.
- As a result, the number of “unicorns” has increased. Today there are nearly 1,200 privately held companies valued at over $1 billion.
- While private equity was once considered a microcap asset class, it now includes a range of small-cap, mid-cap and even large-cap companies.
- This shift has implications for investors seeking to balance allocations to public and private equity in their portfolios.
This material is provided for informational purposes only and should not be construed as investment advice. There can be no assurance that developments will transpire as forecasted. Actual results may vary. The views and opinions expressed may change based on market and other conditions.