Nizar Tarhuni: The State of Private Markets and Venture Capital Investing

The Long View

Nizar Tarhuni heads up research for PitchBook, which is a Morningstar affiliate. PitchBook is a premier provider of data on public and private markets. We’re going to focus a little bit more on private markets today because this topic is aligned with what we’ve been talking about recently at Morningstar relating to the evolving investor. The concept there is it’s not traditional financial outcomes, it’s also nonfinancial outcomes. It’s also not just public markets, it’s private markets. It’s another important dimension that advisors have to manage on behalf of their clients.

Background

Bio

Venture Capital, Public, and Private Companies

“Battle of the Funds: Do VC Specialists Outperform Generalists?” by Leah Hodgson, PitchBook, Sept. 21, 2023.

“Quantitative Perspectives: US Market Insights, Q3 2023,” PitchBook, Aug. 10, 2023.

“Analyzing the IPO Market Outlook: Examining Current Market Conditions to Highlight Potential Next Steps for VC-Backed IPOs,” PitchBook, Sept. 7, 2023.

Performance Trends

PitchBook Indexes

Q3 2023 PitchBook-NVCA Venture Monitor

Return Smoothing

“Return Smoothing in Private Markets: Estimating the True Volatility of Private Market Returns,” PitchBook, June 4, 2021.

Strategy and Manager Selection

“Predicting Performance: How Persistent Are Private Fund Returns?” PitchBook, Aug. 26, 2023.

“Allocator Solutions: Evaluating Persistence in Fund Performance,” PitchBook, Aug. 24, 2023.

PitchBook PE Barometer