Maximize your investment portfolio with alpha returns by exploring the divide between public and private markets and taking advantage of the inefficiencies in private markets that lead to pronounced return differentials.
Summary:
Discover the divide between public and private markets and how inefficiency in private markets creates opportunities to earn alpha returns. A wealth of research supports that private market price discounts of 20-30% can lead to "excess returns". Public markets are considered efficient but private markets are notorious for their inefficiencies, offering investors opportunities to outperform the market.
Empirical evidence highlights the pronounced return differential with private equity yielding 500 basis points more than the S&P 500 and private investments like real estate and venture capital commanding an annual return of 13%.
Entrepreneurs seeking higher valuations also provide evidence of the substantial pricing premium commanded by public securities. Don't miss out on this opportunity to enhance your investment portfolio and generate above-market returns.
Full Story: HERE (Fundraise)
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Reference:
- https://fundrise.com/education/why-private-markets-outperform-traditional-publicly-traded
- https://www.investopedia.com/terms/s/sp500.asp
- https://www.mercer.com/our-thinking/wealth/private-markets-top-considerations.html
- https://www.mercer.com/our-thinking/wealth/private-markets-top-considerations.html