Morgan Stanley: Public to Private Equity in the United States - A Long-Term Look

This change has had reverberations for asset managers, investors, executives, and policy makers.

In this report we seek to answer the following questions:

• What have been the major drivers behind the shift from public to private equities in the U.S.?
• Why are there fewer public companies today than there were 25 years ago?
• What are the long-term trends in buyouts?
•  What are the long-term trends in venture capital?
• Where do we go from here?

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Counterpoint Global
 
Counterpoint Global seeks to make long-term investments in unique companies whose market value can increase significantly for underlying fundamental reasons. Their portfolios are typically concentrated and differentiated from their benchmarks. Counterpoint Global consists of 26 people, including 16 investment professionals and two disruptive change researchers. The team’s culture fosters collaboration, creativity, continued development, and differentiated thinking.

RISK CONSIDERATIONS

Predictions are based on current market conditions, subject to change, and may not necessarily come to pass.

There is no assurance that the techniques mentioned in this article will be successful in helping improve the accuracy of predictions. There is no assurance that a Portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that the market values of securities owned by the Portfolio will decline and that the value of Portfolio shares may therefore be less than what you paid for them. Market values can change daily due to economic and other events (e.g. natural disasters, health crises, terrorism, conflicts and social unrest) that affect markets, countries, companies or governments. It is difficult to predict the timing, duration, and potential adverse effects (e.g. portfolio liquidity) of events. Accordingly, you can lose money investing in this Portfolio. Please be aware that this Portfolio may be subject to certain additional risks. In general, equities securities’ values also fluctuate in response to activities specific to a company. Investments in foreign markets entail special risks such as currency, political, economic, market and liquidity risks. The risks of investing in emerging market countries are greater than risks associated with investments in foreign developed countries. Privately placed and restricted securities may be subject to resale restrictions as well as a lack of publicly available information, which will increase their illiquidity and could adversely affect the ability to value and sell them (liquidity risk). Derivative instruments may disproportionately increase losses and have a significant impact on performance. They also may be subject to counterparty, liquidity, valuation, correlation and market risks. Illiquid securities may be more difficult to sell and value than public traded securities (liquidity risk).