The potential advantages of private market investments, specifically venture equity and venture debt investing, extend to five dimensions of performance.
Privatization appears to be slowly rearing its head in the Middle East again, mostly in the economic plans of the GCC countries and in Egypt. To be clear, this is not because attitudes have changed. Divestment from state-owned enterprises is seen as a last resort in the Gulf countries in light of the fiscal tightening.
The market for IPOs, traditionally a useful barometer of the collective appetite of investors, suggests a slowdown is at hand in the United States.
Growing tensions in Iraq may have temporarily dampened the mood of equity investors over the past week, but as we approach the year’s midpoint, most major stock markets remain near record highs.
This year is on track to be a banner year for IPOs. It's important that financial advisers remind clients about the data on the long-term underperformance of IPOs, and if they still insist on buying shares, that they do so from a pool of money that has been specifically set aside for this purpose.