Executive Summary
Global equity markets ended October in green, supported by the easing of trade tensions between U.S and China, and a rate cut by U.S Fed amid softer-than-expected September inflation data. Emerging markets outperformed developed markets with MSCI EM gaining by 4.1%. In recent years, private markets have been gaining popularity as investors continue to look for avenues to generate higher returns. While institutional and high-net-worth investors possess the expertise and patience to navigate private assets, public markets continue to command the loyalty of retail investors who prize simplicity and immediacy. The standoff between public and private markets is fascinating — a standoff between liquidity and latitude, transparency and opacity, scale and selectivity — and the debate remains far from settled. While fee compression is being observed in both public and private markets, they differ in terms of quantum of investment opportunities, pressure to exit, fund flow pressure, innovation capital, ease of measuring a bubble etc. While private markets may promise higher returns, but they also demand a longer horizon, thicker skin, and greater faith. The debate, therefore, is not about which is better — but which better fits your temperament as an investor.
