Hedge funds have piled into private markets at a record pace, according to Goldman Sachs.
Private market data can be a tough find, but a few upstarts believe they have found a way in.
New tools from Forge Global and Cyndx are two examples.
(Business Insider) — The pipeline is gushing.
Money is pouring into the private markets, pumping up valuations and forcing new entrants and old venture investing stalwarts to battle over funding rounds. Already this year, 155 start-ups became unicorns, according to Goldman Sachs.
Hedge funds including D1, Coatue, Tiger Global, and Whale Rock pumped over $150 billion into private companies in the first half of 2021 — more than the total of 2020. More than a quarter of money invested in private companies this year has come from hedge funds, according to Goldman Sachs.
“We are observing a greater tendency among new launches to incorporate privates as part of their strategy from inception: more than 25% of the new equity long short launches we have worked with since the start of 2020 have a mandate to invest in privates in some form,” Goldman’s prime brokerage desk wrote in a report.