Pitchbook reports the aggregate market cap of the Unicorn Market index in Q1 is $8.6T. That's nearly 2.5x that of the Russell 2000. https://t.co/ZSsYyaQr3d
Seems like more growth in the demand for privates on the horizon. ... which allows companies to stay private longer... which leads to more growth in the private markets... which attracts more capital... https://t.co/vzi2ADTI6g
With ~$15-20M in incremental G&A expense for being public, $100m is probably a low bar today.
But still, private capital markets are eating the public capital markets.
Today 87% of US companies with >$100M in revenue are private, while 13% are public. The growth of private market investing over the years (source: Morgan Stanley research):
Public companies can spend $15-20M per year on incremental G&A expense just for being public. That's a cost of 3-4% points of net margin for a company with $500M in revenue.
Private capital markets are continuing to eat the public capital markets.
PE for Main Street investors? Change is coming to 401(k) plans https://t.co/CP3bp8osPY