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Is any hedge-fund trying to index private equity? Some of the unicorns, for example, probably merit(ted) being ranked among the fortune 500, but are not part of
by hacknat 7y ago
Is any hedge-fund trying to index private equity? Some of the unicorns, for example, probably merit(ted) being ranked among the fortune 500, but are not part of the S&P 500 index. It would be interesting to see index investing make it's way into private equity.
- the_watcher 7y agoHonest question - how would you actually go about doing this? The phenomenon you're describing is definitely true to some extent. Look at when in their lifecycle companies went public prior to 2008 compared to now: far more of the value created is now captured by private capital. This is why, ironically, PE is the largest source of alpha to vehicles like pension funds - they can't capture the same kind of yield in public markets anymore and have mandates about the types of investment they can make. Figuring out a better way to democratize access to the potential yield that used to be available in public markets would be excellent, but I'm not sure how to do it without pretty massive side effects.