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Why Private Markets?

Accessing unique late-stage Venture Capital opportunities in the burgeoning private innovation economy with untraditional liquidity and low-to-negative correlation to public equities.

The information on this page is for professional investors only and should not be considered as investment advice.

While some of today’s largest technology companies like Amazon, Microsoft and Nvidia continue making advances, some of the most significant innovation and disruption is often produced by companies in the private market. After all, what we see in the publicly listed space is really the tip of the iceberg.

GAM has teamed up with the established US private markets group - Liberty Street Advisors to offer non-US investors access to the private innovation economy.

Why Private Markets?

The public market is shrinking as companies stay private for longer. The private market is now predominant. (Please refer to the charts below)

Private markets poised for continued growth - 86% of institutional investors invest in alternatives, allocating on average 23% of their portfolios (with private equity the largest subclass, followed closely by real estate).***

Number of domestic companies listed on NASDAQ and NYSE:

Source: World Bank as at 31 Dec 2019.
*Center for Research In Security Prices, CRSP 1925 US Stock Database, Wharton Research Data Services as at 31 Dec 2023.
**Capital IQ as at 31 Dec 2023.
***Source: Liberty Street Advisors, Fidelity as of September 6, 2023.

Key benefits of investing in private markets:

Significant growth in private companies:


Source: Pitchbook as of 1/12/2023

Christian Munafo, Chief Investment Officer, provides an overview of the opportunities in private markets

Christian Munafo, CIO of LSA, provides an overview of the opportunities in private markets.

Why Late-Stage Venture Capital?

Late-stage Venture Capital sits between early-stage Venture Capital (VC) and traditional Private Equity (PE) buyouts and focuses on backing already successful companies with proven products, strong operating models, established market share, strong management teams and a near-term exit path. 

Investors in this asset class aim to participate in the potential capital appreciation of these dynamic innovation companies whilst under private ownership which can yield outperformance. Historically, roughly two-thirds of VC-backed companies exit through Mergers & Acquisitions (M&A) versus public listings, meaning that public investors often miss out on a large segment of the addressable opportunity set.   
 


Source: The Private Shares Fund, Pitchbook, Y-Charts, Nasdaq, SEC Edgar. Total 746 U.S. Venture-Capital-Back Private Companies that executed an IPO from January 01, 2010 through March 31, 2023. Last private financing prices adjusted for subsequent stock splits to allow for appropriate comparisons. Only includes formerly VC-backed, U.S. companies listing on the NYSE or NASDAQ. Analysis tracks the change in price for an individual share at last private financing, and therefore does not factor in potential tax implications or management and performance fees that may be associated with investments in private markets. Past Performance is no guarantee of future results.

Why semi-liquid private equity (PE)?

Experienced Investment Team

Highly experienced team with rigorous investment process and focused criteria

Deep relationships throughout the Venture Capital /growth ecosystem drive significant deal flow and information access

Invest through both secondary transactions and participation in new financing rounds

Kevin Moss, Managing Director, Christian Munafo, Chief Investment Officer and Jonas Grankvist, Director are responsible for investment management, risk oversight and operational control of the strategy. All portfolio investment decisions require their unanimous approval.
 
The investment management team works closely with a group of analysts. Transparency is encouraged at all levels, and the team is bound together by a highly collaborative, tight-knit culture, with interaction and knowledge sharing across team members.

We focus on what is called later stage venture capital and growth oriented investing... beyond start-up phase of development and the associated technology risk. These companies have often validated the value proposition for their product or service, they have an established market presence.

Christian Munafo, CIO, Liberty Street Advisors, Inc
Kevin Moss
President & Portfolio Manager, Liberty Street Advisors, Inc
Christian Munafo
Chief Investment Officer, Liberty Street Advisors, Inc
Jonas Grankvist
Managing Director, Liberty Street Advisors, Inc.
Outlook 2025
Private companies driving innovation and disruption
December 2024

PRIVATE SHARES: “We believe clients can achieve proper diversification through growth areas like late-stage private innovation companies.”

Investment Opinions
The Private Innovation Economy
25 June 2024

Given the shift of capital from public to private markets, and the trend of high-growth companies staying private longer, Liberty Street Advisors’ Christian Munafo explains how investors can tap into these dynamic, innovative and revenue-rich late-stage US businesses during their most exciting development phases.

Our Thinking

Multi-Asset Blog
ECB cuts interest rates again
13 December 2024

The eurozone’s fourth cut of 2024 comes against the backdrop of a potential ‘Perfect Storm’ of political instability and economic woes.

Outlook 2025
Adding fuel to the rebound
December 2024

GLOBAL MACRO: “If credit conditions ease, this will boost demand and support a recovery.”

Outlook 2025
Upside potential in long-term trends
December 2024

ASIA & CHINA EQUITIES: “Chinese stocks currently offer a rare opportunity for investors.”

Your local contacts

Please visit our Contacts and Locations page.

Disclosure: For pre-marketing purposes with European institutional clients only. GFML is marketing the strategy, with the specific investment vehicle to be determined at a later date. This document provides information on investment strategies or investment ideas to potential professional investors domiciled or with a registered office in the European Union in order to test their interest in an AIF or sub-fund of an AIF which is not yet established. Accordingly, this document is not intended for circulation to any other investors. As the AIF or sub-fund of an AIF is not yet established, that AIF or sub-fund has not been notified, registered or approved in accordance with local law and/or regulations implementing the EU AIFM Directive. The information contained herein does not constitute and is not intended to constitute an offer or placement to potential investors to invest in the shares of an AIF or a sub-fund of an AIF and accordingly should not be construed as a prospectus or offering document. This document provides a high-level summary only of investment strategies or investment ideas and does not define the terms and conditions relating to investment in an AIF or sub-fund of an AIF which will be included in the definitive offering document and other materials and agreements relating to such an AIF or sub-fund of an AIF. This document does not constitute a subscription form or similar document whether in a draft or a final form for the subscription or acquisition of shares in an AIF or sub-fund of an AIF. No legally binding terms are created herein or shall be created until definitive documentation is executed and delivered in accordance with any applicable law. The information set forth herein has been obtained or derived from sources believed by [GAM Fund Management Limited] (“GAM”) to be reliable. However, GAM does not make any representation or warranty, expressed or implied, as to the information’s accuracy or totality, nor can it accept any responsibility for errors in this document. GAM, its officers, employees or agents shall not accept any liability whatsoever for any loss at all arising from any use of this document or its contents, or otherwise arising in connection therewith. The information contained in this document shall not be considered to contain legal, tax or other advice, nor does GAM recommend that the contents serve as the basis for any investment decision. This document has been provided to you solely in order to test your interest in an AIF or sub-fund of an AIF which is not yet established and does not constitute an offer or a solicitation for an offer, or any advice or recommendation to purchase any securities or other financial instruments, and may not be construed as such. Any recipient of this document who intends as a result of this document to apply for shares in an AIF or sub-fund of an AIF which is not yet established are reminded that any such application should be made solely on the basis of the information contained in the offering document of that AIF or sub-fund of an AIF which may be different than the information contained in this document. This document is being provided by GAM or on its behalf on a confidential basis and is intended exclusively for the use of the person to whom it has been provided by GAM or on its behalf, and it is not to be copied, reproduced or redistributed under any circumstances or in any form whatsoever, to any other person in whole or in part.