PitchBook and Morningstar Launch New Newsletter on Investment Trends

Later this month, PitchBook and Morningstar will launch a new weekly newsletter titled Public Meets Private. This publication, spearheaded by Alexander Davis of PitchBook, is designed to provide crucial insights into one of the most significant trends in investing today: the convergence of public and private markets.

The landscape for private investments has expanded significantly, offering unprecedented access to individual investors. As opportunities within the publicly traded stock market have diminished, interest in alternative investment avenues has surged. This shift is marked by a growing demand for private market products, driven by regulatory changes and innovative capital structures that cater to a wider range of investors.

Understanding Public-Private Convergence

The trend known as public-private convergence is reshaping the investment landscape. Both accredited investors and the general public are increasingly looking at private market opportunities such as private equity, venture capital, and private credit. These investments are now available through various vehicles, including evergreen funds that allow for continuous investment and improved liquidity. According to the latest Evergreen Fund Landscape report from Morningstar and PitchBook, the assets in evergreen funds have doubled since 2022, while direct lending assets under management have more than tripled.

This evolution presents new opportunities for investors but also introduces complexities. With a diverse client base comes a mix of investment priorities, risk profiles, and levels of understanding regarding private assets. Many of these new products have intricate structures and often opaque pricing, which can lead to higher fees and withdrawal challenges.

Implications for Investors and Advisors

For financial advisors, understanding how to integrate private investments into client portfolios is increasingly vital. They must familiarize themselves with the nuances of these asset classes to better serve clients who may be exploring alternative investments. The same applies to individual investors, particularly as more defined-contribution plans like 401(k)s consider incorporating private fund options. However, the promised benefits of these new retirement products may not always align with industry expectations.

As regulations become more accommodating, investors must remain vigilant about potential hidden fees and risks associated with these emerging opportunities. The convergence of public and private markets also brings a host of new products and regulatory developments that asset managers must navigate.

The Public Meets Private newsletter will cover all these topics and more. Readers can expect timely articles and research contributions from private equity and credit experts at PitchBook, alongside insights from mutual fund analysts at Morningstar. This initiative aims to deepen investor knowledge about the evolving landscape of wealth and alternative investments, including recent efforts like the development of evergreen fund indexes.

This new newsletter will serve as a vital resource for anyone looking to stay informed about the intersection of public and private investment opportunities. Subscribers can look forward to engaging content that addresses the complexities and benefits of private market investments in the current economic climate.