Private Markets Go Public: Emerging Trends and Why Data Will Be the Differentiator

Private market investments have been front and center in the news given a potential executive order that would allow 401(k) plans to invest assets in private equity. That could accelerate privatized investing, which was once restricted to institutional players but has been growing in recent years as individual investors gain access through target-date funds, ETFs in a self-directed brokerage account, or a self-directed IRA from a 401(k) rollover.

Given those dynamics, what’s behind this rapid evolution, and what implications might it hold for investors and private markets more broadly?  

Key Trends

Unprecedented asset growth: Since 2013, the size of global private market assets has tripled, with industry forecasts projecting a rise to $62 trillion by 2034. As companies are opting to remain private longer, public listings have declined, yet the private sector has seen a surge in “unicorns (privately held companies valued at over $1 billion USD). The table below highlights a few of these unicorns. 

*Post-money valuation

Source: FactSet

The chart below, generated from FactSet data, illustrates the explosive growth of these unicorns, whose cumulative valuations have surpassed the $4T mark. 

Increased access: Technological innovation and regulatory reconsideration have driven a surge in investment tools targeting private assets. From fintech secondary marketplaces, such as the Nasdaq Private Market and the UK’s PISCES platform, to tokenized offerings and large asset managers devising new products, private equity and credit are more accessible. At the same time, the launch of private company indices by providers such as MSCI is introducing greater transparency and helping investors benchmark performance at the company level, much as they do in public markets.

The rise of the retail investor: The surge in retail investing that has reshaped public equity markets in recent years is now spilling over into the private market universe. Over the next decade private wealth is projected to contribute approximately 60% of AUM growth in private markets, a marked shift from the traditional dominance of institutional investors.

Forecasted surge of PE exits: As highlighted in a PwC article from late last year, general partners are under growing pressure from LPs to return capital. As a result, an estimated 4,000 to 6,500 delayed exits representing as much as half of annual U.S. M&A volume may be poised to re-enter the market. This pent-up supply of mature portfolio companies could trigger a wave of activity in both sponsor-led transactions and public offerings. The timing and magnitude of this shift could materially reshape exit dynamics. 

Less transparency, different risks: Despite increased popularity, private markets still present challenges of limited data transparency, illiquidity, fees, and accurate valuations. These factors amplify risk, especially as new investor segments enter without the protections typical in public markets.

As a result, the demand for high-quality private market data is at an all-time high. While due diligence on investor-backed companies remains challenging, innovative approaches powered by AI and enriched by new data sources are transforming the landscape. These advancements offer deeper transparency and empower investors to more accurately assess directional growth and momentum. 

Market interplay: The relationship between public and private markets is shifting. As ETF and retirement vehicles edge into private assets, the historical lines between public liquidity and private opportunity blur. Investors may need fresh approaches to asset allocation and risk management as a result.

Looking Ahead

As the lines between public and private investing continue to blur, the rapid expansion of private markets investing is certain to remain a defining trend. Fueled by innovation, capital inflows, and the growing number of companies staying private longer, this evolution presents both opportunities and challenges.

However, investors will need to keep a watchful eye on shifting regulatory frameworks and the quality and consistency of private market financial data to effectively navigate this transformation. Ongoing regulatory developments and technological breakthroughs such as tokenization and more active secondary markets may enhance access, liquidity, and transparency over time.

Still, in periods of volatility or economic stress, these asset classes will likely face critical tests. Careful monitoring, disciplined due diligence, and awareness of persistent data and liquidity limitations will be essential as private markets mature and move further into the institutional mainstream and beyond.

Let’s not overlook the implications for private equity and venture capital firms. With record levels of dry powder on hand, these firms have ample capital ready to deploy. However, a persistently challenging exit environment and a considerable backlog of unrealized assets are making LP distributions more unpredictable, putting additional pressure on fundraising and performance metrics—trends we’ve seen intensify in 2025.

In response, private equity deal strategies are evolving. Firms are shifting away from heavy reliance on leverage and well-timed exits, and instead are prioritizing operational value creation, sector selectivity, creative financing solutions, and agile portfolio management to successfully navigate today’s higher cost of capital and shifting liquidity landscape.

FactSet Private Markets: See What Others Can’t

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Partner with FactSet to streamline your workflows, gain a panoramic view of the private markets, and unlock the insights that drive confident decisions. Ready to see how much more you could be achieving? Explore what FactSet Private Markets can do for your strategy:

• Case study: Global Big Four Firm Expands Market Reach with FactSet’s Private Market Data
• FactSet Private Company Financials
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Article Co-Authors

Ms. Jennifer Hanscomb is an Associate Product Manager on FactSet’s Entities, Transactions, and Deals team, where she focuses on data sourcing and integration strategies that power the firm’s Private Markets offering. In addition to her work on data acquisition, she collaborates across teams to support go-to-market initiatives that enhance product adoption and client value. Before joining FactSet, Jennifer held key roles at AQR Capital Management, a leading alternative investment firm. There, she contributed to both the Marketing and Human Resources functions. In her most recent position at AQR, she led the analyst training program for early-career talent, helping to shape the onboarding and professional development of new graduates entering the investment industry. Jennifer holds a Bachelor’s degree in Political Science and a Master’s degree in Human Resource Management, both from the University of Connecticut.

Mr. Jamil Sheppard is Director of Enterprise Growth & Partnerships at FactSet, based in New York. In this role, he specializes in enhancing client workflows by leveraging cutting-edge technologies, including predictive analytics, artificial intelligence, and connected data models. His work empowers organizations to optimize decision-making processes and unlock actionable insights, particularly in private markets and mergers and acquisitions. Prior to FactSet, he held senior leadership roles in sales and strategy at firms including ComplySci and Cyndx, he and previously spent over 16 years at FactSet in sales and product strategy roles. Mr. Sheppard earned a Bachelor of Science in Psychology from Arizona State University. 

Citations:

Frisch, I. (2025, July 19). The next frontier: Private market boom. The New York Times. https://www.nytimes.com/2025/07/19/business/dealbook/private-market-boom.html

PwC. (2024). Capital considerations: Private equity exit drought. https://www.pwc.com/us/en/industries/asset-wealth-management/library/private-equity-exit-drought.html 

This blog post is for informational purposes only. The information contained in this blog post is not legal, tax, or investment advice. FactSet does not endorse or recommend any investments and assumes no liability for any consequence relating directly or indirectly to any action or inaction taken based on the information contained in this article.