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According to Morgan Stanley the private markets are expected to grow to about $12.5 trillion in 2025 from $7.2 trillion in 2020, . Buyouts, growth equity and venture capital account for about 69% of the industry. These firms are now racing to develop new products that will appeal to wealthy individuals and market them to the financial advisers who manage their money.
“The decline in public companies and the increase in participation in private markets are related,” says Tony Tutrone, global head of Neuberger Berman’s NB Alternatives business, which focuses on private-market investments. Spiraling inflation, rising interest rates and recession fears have hammered stocks this year, closing the window to most new public offerings. But even if market conditions turn more welcoming for IPOs in coming years, many private companies may hold off the decision for longer, industry executives say.
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