what are private markets

Private markets refer to investments in debt or equity instruments that are not traded on public exchanges. Private market investing involves equity and debt financings of private companies, and investors seek private market investments either directly or via funds as part of an alternative investment strategy that can diversify other public market investments. Private markets offer access to innovative, high-potential companies in their early stages of growth, thus offering investors a set of opportunities that are not available in public markets. Private equity and private debt are the two components of private markets, and they are individually referred to as Private Debt and Private Equity. Private equity is an investment fund, usually a limited partnership, which invests in and restructures private companies. Private markets are important because they offer investors a variety of reasons to invest, such as superior returns, diversification of portfolios, and access to companies throughout their lifecycle and growth.