Demystifying Private Markets With Unicorn Indexes

Public equity markets are the best-lit playing field in investing and afford investors of all sizes equal access to vital information. Conversely, because there are few disclosure requirements for private companies, many private-market investors lack sufficient information to make informed investment decisions. Despite their lack of transparency, private markets are growing at a phenomenal pace. Over the last decade, more money has been raised in private markets than in public markets with no sign of a change in the trend. Companies are staying private longer thanks to plentiful funding, and private-company holdings are increasingly making inroads into individual investor portfolios—through retirement plans and ownership of “crossover” mutual funds.