Investors are increasingly looking for ways to diversify their portfolios. One area where investment is booming is in private markets.
Kunal Kapoor, CEO of Morningstar (MORN), told Yahoo Finance about this growing trend: “It may have been public before, but now it’s not public for multiple reasons. “There is a growing appetite to invest in a range of companies.” He points out that it’s not just corporations that investors are looking to buy, but the private credit market as well. “A significant portion of the debt that is being raised today comes from what I would call non-traditional lenders, at least in the sense that it does not come from traditional commercial banks. As the number increases, the number of private financial institutions also increases. Credit is also expanding quite meaningfully,” he added.
Mr. Kapur warns that investing in private markets comes with risks, including reduced liquidity and tax complications. However, he believes many of these issues are being resolved and more investment vehicles will emerge to make it easier for retail investors and asset managers to leverage their funds.
For more expert insights and analysis on the latest market trends, learn more about Extended Time of Market Domination here.
This post was written by Stephanie Mikulich.
