Private capital, defined as assets not available on public markets, includes private equity, private credit and real assets. The private capital universe expanded to $22 trillion by 2024, more than doubling since 2012. A decline in public listings and longer private stays for startups (average 16 years) have fuelled the growth. A cluster of mega-private firms—"hectocorns" valued at $100 billion+—now commands outsized value, with the top private firms totaling roughly $1.4–$1.5 trillion. Private equity has outperformed the S&P 500 by about six percentage points annually, shifting investor attention toward private markets.
"Private capital, defined by the bank as assets not available on public markets, includes private equity, private credit and real assets. It has multiplied at a staggering pace, more than doubling since 2012 to $22 trillion by 2024. This explosion has been driven by a retreat from public markets. Since 2000, the number of U.S.-listed companies has halved to just over 4,000, even as the number of private venture-backed firms soared 25-fold."
"The world's most transformative firms aren't found on the stock market ticker, BofA argues. Just as public stock markets have a "Magnificent 7," so there is a "Private Magnificent 7" of "hectocorns," each valued at $100 billion or more and growing. BofA's Thematic Research team estimates that their combined valuations have skyrocketed nearly fivefold since 2023 to $1.4 trillion. They evaluated the top 16 companies in the space, representing $1.5 trillion in value, an astonishing 1% of global GDP."
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]