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

Institutional investors have moved significant capital from public equities to private markets over the last four decades. This shift is driven by perceived benefits like sharper governance and patient capital in private markets versus public equities' scale and liquidity.

Recent market changes, including higher interest rates and a tougher exit environment, complicate this trend. However, private companies still have increased access to capital, and demand for AI-related funding is surging.

The article doesn't predict a reversal, but highlights the ongoing trade-offs between public and private markets. Investors must consider their time horizon and risk tolerance, as private investments carry higher fees and illiquidity.