Private Equity
Blue Sky Capital Resources Insights - Is It Time To Add A PE Index To World Market Indicators?
July 2019
For all of you savvy investors who are bristling already with thoughts along the line of “Indexes don’t apply to case based investing” and I don’t trust the stock market, that’s exactly why I am considering placing my trust in private equity investments,” please bear with me for a few minutes. Let’s start with a little background on the stock market and the creation of indexes. Venice, Brussels, Amsterdam, and London all hold their own rightful claim for the creation of the stock exchange as we know it today, and it is generally accepted that trading has been around at least since the 1400’s. In the early years, this exchange looked an awful lot like the private equity markets of today. Regulation didn’t begin to take any serious hold until the South Sea Company bubble burst in 1720. Presently, the global stock exchange is a heavily regulated marketplace generally deemed as close to a “perfect” market as the world has ever experienced. The major indexes provide a high-level glimpse into the trends, performance, and sentiments of major segments of the global economy as a whole. For centuries, the stock exchange was where investors put their money to work, and where businesses raised capital. With the preponderance of take-private transactions and the proliferation of private equity mega funds, it is pertinent to consider that the tides are shifting in the investment field of play.
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