Private markets now more accessible to investors
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MSCI launched an index that combines public and private markets, a sign of how mainstream private equity has become for investors hunting returns.
Why it matters: Private markets are getting easier for everyday investors to access. That comes with more risk, but also with potentially bigger returns.
Zoom in: The new MSCI All Country Public + Private Equity Index blends stocks and unlisted assets into a single benchmark.
- The index aims to give a 15% weight to private equity. It combines:
- The MSCI ACWI Investable Equity Index of 8,300 listed companies covering 99% of developed and emerging market stocks.
- The new MSCI All Country Private Equity Index which tracks valuations from 10,000 private equity funds worldwide.
What they're saying: "We're going to see continued convergence in the private and public spaces," said Marc Pinto, head of Americas equities at Janus Henderson, in the firm's 2026 outlook.
- That convergence is happening as "traditional exits for private equity companies are not as abundant as they have been traditionally in the past," he said.
- His team is advising clients to combine private and public investment portfolios rather than treat them as separate entities.
Zoom out: The MSCI index comes amid a private credit boom coupled with Wall Street strategists pushing clients to increase allocation to these markets.
- JPMorgan is telling clients that private market allocation is a more effective hedge with further upside potential than fixed income.
- Retirement account fund allocators now face fewer barriers for allocating to private markets following an executive order from President Trump.
- Global private equity assets under management have more than doubled to $4.7 trillion since 2018, according to Bain.
State of play: Advocates of private market access argue it is only fair to increase access to private equity investments for everyday people while companies remain private for longer.
- Skeptics say private markets are, well, private, and their lack of transparency could cause problems for more novice investors.
The big picture: As private equity becomes a core slice of institutional portfolios, the line between public and private markets is blurring.
- The benchmarks are finally starting to catch up.
