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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

GAM Star Disruptive Growth está gestionado por Mark Hawtin, director de inversiones. Con más de 35 años de experiencia en la inversión y 20 años en la inversión long-only y long/short en valores tecnológicos a escala mundial, Hawtin ha demostrado su capacidad para generar rentabilidades en diversos ciclos de mercado.

David Goodman es responsable del análisis técnico y asesora en la estructuración de la cartera y la gestión del riesgo.

El equipo aplica sus conocimientos especializados y su experiencia a empresas y sectores cuyos modelos de negocio se vean apuntalados por las nuevas tecnologías de cara a estructurar una cartera escalable y diversificada de empresas a escala mundial.

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
Presidente y gestor de carteras, Liberty Street Advisors, Inc.
Christian Munafo
Director de Inversiones, Liberty Street Advisors, Inc.
Jonas Grankvist
Director General, Liberty Street Advisors, Inc.

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Divulgación: Las rentabilidades pasadas no son indicativas de rentabilidades futuras ni de tendencias actuales o futuras. Las indicaciones podrían basarse en cifras denominadas en una divisa que puede ser diferente de la divisa de su país de residencia y, por tanto, la rentabilidad puede aumentar o disminuir como consecuencia de las fluctuaciones monetarias. Capital en riesgo: todas las inversiones financieras implican un elemento de riesgo. Por lo tanto, el valor de una inversión y los rendimientos de la misma variarán y el importe inicial de la inversión no puede garantizarse. Toda referencia a un valor no constituye una recomendación de compra o venta de dicho valor.  No se garantiza la consecución de los objetivos de inversión de la estrategia mencionada.  Además, no hay garantía de que las técnicas de gestión de riesgos utilizadas por GAM eliminen o mitiguen el riesgo en cualquier entorno de mercado.  Los productos GAM no están disponibles para la venta o inversión en cualquier estado o jurisdicción en la que dicha venta o inversión esté prohibida y no están dirigidos a personas en esas jurisdicciones o donde esté prohibido por la ley.   
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