The power of private market investing is that it allows investors to take long-term views, explore big macro themes, and position their portfolios to capitalize on future trends – helping translate insight into meaningful investment.
There is huge opportunity beyond public markets. A wide swath of the global economy is inaccessible via public stock markets and bonds, including many of the high-growth, innovative companies that may offer the strongest potential returns. Furthermore, the US is far from the only place to birth these rising stars. As our report highlights, Europe and Asia Pacific currently account for roughly half of the world’s unicorns by value.
Moreover, investors can generate broader portfolio benefits if they diversify their geographical exposure. Our quantitative research has demonstrated the potential improvements to risk-adjusted returns offered by broad geographical diversification, as part of an appropriately diversified private market portfolio.
For more information on gaining exposure to the exciting opportunities in Europe and Asia Pacific and building a diversified private market fund portfolio, please get in touch with your HarbourVest contact or email firstname.lastname@example.org.
To read more of our research on the power of global investing, take a look at our paper, “The Case for Globalizing Your Private Equity Portfolio"
For a broader introduction to private markets, including the mechanics of private investing, please read our primer, “Investing in the Private Markets: Focusing on the Fundamentals"
Investors can generate broader portfolio benefits if they diversify their geographical exposure.