Private markets have undergone a tremendous amount of structural change over the last several decades. 2024 brought these changes directly into the headlines. Select examples1 include:
- OpenAI raises $6.6B and is now valued at $157B – TechCrunch
It is noteworthy that the $350 billion valuation of SpaceX is larger than the entire U.S. micro-cap market. Databricks’ $62 billion valuation would make it large enough to qualify for inclusion in the S&P 500 index. Nevertheless, their fundraising round was still oversubscribed. These striking capital commitments and valuations would almost certainly not have been possible even a decade ago.
This note builds on recent comments from Jared Weiner, Pathstone’s managing director of private markets: Private Markets – Changing Market Structure Benefits Scale. We provide an overview of the market evolution over the past few decades, and how we navigate these new dynamics in evaluating investment opportunities for our clients.
Download our full report here.
1. Companies cited for illustrative purposes only and do not constitute investment recommendations.
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