All articles tagged with #private markets
An investigative piece exposes a murky private-share market where investors trade pre-IPO stakes in SpaceX and OpenAI via brokers and online platforms. Deals often come with opaque valuations, limited liquidity, and regulatory gray areas, raising risks of illiquidity, misrepresentation and scams; buyers should beware that these shares may never become publicly tradable.
A Financial Times opinion argues that this bull market has ridden a de‑equitisation backstop—shrinking public equity supply via buybacks and privatisations. Now an AI boom, led by players like OpenAI, Anthropic and SpaceX, could bring sizable public-market supply as these firms explore IPOs with valuations potentially up to $4 trillion, possibly expanding the US equity base by about 6% and weakening the de‑equitisation ‘put’ that has supported prices. Meanwhile, Big Tech’s shift toward heavy AI investment is dampening buybacks, suggesting more public issuance could emerge in coming years.
Investors are scrambling to buy Anthropic’s private stock as the AI startup’s rapid growth and momentum drive a scarce secondary market, with offers ranging from cash to partnerships and rumors of valuations around or above $1 trillion, while most insiders hold firm and the pool of sellers remains thin.
Apollo Global Management capped redemptions from its flagship Apollo Debt Solutions BDC after investors sought about $1.6 billion (11.2% of its $15 billion net assets), above the 5% threshold for limiting withdrawals. The firm honoured roughly half of withdrawal requests, joining peers like Morgan Stanley and BlackRock in restricting outflows as investor sentiment cools on semi-liquid private markets. The fund, with about $25 billion in investments, posted roughly flat net flows for the quarter after new commitments and redemptions, and recorded its first monthly loss in February due to a sell-off in more liquid loans.
Robinhood debuted its flagship $658.4 million Robinhood Venture Fund (ticker RVI) on the NYSE, giving retail investors exposure to late-stage private tech names such as Databricks, Ramp and Revolut; the closed-end fund aims to broaden access to private assets amid soaring valuations, while the IPO priced at $25 per share and drew modest demand (12.6 million shares sold).
Private credit funds—reaching about $3 trillion—are under scrutiny after Blackstone and Blue Owl faced sizable withdrawals, underscoring concerns about opacity and risk as the market grows to retail investors and potentially faces a shakeout despite remaining a flexible financing option for borrowers.
Jamie Dimon warns at an investor event that the opaque $3 trillion private-credit market harbors 'dumb stuff' risks that could spark a crisis like 2008, as AI-fueled private lending outpaces transparency; Fed minutes flag vulnerabilities in private credit despite low public spreads, highlighting a potential risk blind spot in the financial system.
BlackRock surpassed $14tn in assets under management after a record quarter, with $342bn of inflows in Q4 and almost $700bn for the year, driven by strong equity and fixed‑income ETF flows and a rally in stocks. The firm also expanded private‑markets activity (private credit and infrastructure) and took on about $80bn of Citigroup assets, as it pursues roughly $400bn in private‑markets fundraising by 2030. Revenue rose 23% to $7bn in the quarter, while net profit fell about a third due to higher costs tied to its acquisition spree.
BlackRock posted a record $14 trillion in assets after $342 billion of client cash in Q4, boosted by ETF inflows (ETFs now total about $5.5 trillion) and expansion into private markets via acquisitions, with full-year inflows reaching a record $698 billion.
Blackstone’s 2026 Investment Perspectives argue that AI-driven productivity, moderating inflation, and cheaper capital underpin a multi-year expansion in private markets across private equity, real estate, credit, and infrastructure. AI is driving a significant CapEx cycle in data centers, chips, and digital infrastructure funded largely from cash flow, with growth being resilient but uneven as labor markets cool. A rebound in deal activity and exits, aided by lower financing costs, supports a cyclical upswing; real estate is in early recovery, private credit offers durable income with downside protection, and infrastructure demand remains strong from energy transition and AI needs. International markets show opportunity in India and Japan, with Europe offering selective bets. Blackstone stresses disciplined underwriting, data-driven insights, and platform scale to capitalize in 2026.
The article discusses the transition from private markets to public markets, highlighting the significance of this shift in the financial landscape.
A potential SpaceX IPO could be the largest ever, valued at around $1.5 trillion, offering investors a rare glimpse into its operations and profits, but it also presents Musk with increased scrutiny and regulatory challenges, contrasting with his previous preference for private control.
The 2026 investment outlook emphasizes the growing importance of private markets and real assets, driven by structural megatrends like digitalization, deglobalization, and decarbonization, which are shaping long-term investment opportunities and emphasizing disciplined transformation and operational excellence.
Charles Schwab is acquiring Forge Global for approximately $660 million to enhance access, liquidity, and transparency in private markets, aiming to democratize private market investments for retail investors and expand its wealth management offerings.
Robinhood has announced the filing of a registration statement for Robinhood Ventures Fund I (RVI), a new fund aimed at democratizing access to private market investments for retail investors in the US, allowing them to invest in private companies at early stages through a publicly traded vehicle.