"Private capital, defined by the bank as assets not available on public markets, includes private equity, private credit and real assets. It has multiplied at a staggering pace, more than doubling since 2012 to $22 trillion by 2024. This explosion has been driven by a retreat from public markets. Since 2000, the number of U.S.-listed companies has halved to just over 4,000, even as the number of private venture-backed firms soared 25-fold."
"The world's most transformative firms aren't found on the stock market ticker, BofA argues. Just as public stock markets have a "Magnificent 7," so there is a "Private Magnificent 7" of "hectocorns," each valued at $100 billion or more and growing. BofA's Thematic Research team estimates that their combined valuations have skyrocketed nearly fivefold since 2023 to $1.4 trillion. They evaluated the top 16 companies in the space, representing $1.5 trillion in value, an astonishing 1% of global GDP."
Private capital, defined as assets not available on public markets, includes private equity, private credit and real assets. The private capital universe expanded to $22 trillion by 2024, more than doubling since 2012. A decline in public listings and longer private stays for startups (average 16 years) have fuelled the growth. A cluster of mega-private firms—"hectocorns" valued at $100 billion+—now commands outsized value, with the top private firms totaling roughly $1.4–$1.5 trillion. Private equity has outperformed the S&P 500 by about six percentage points annually, shifting investor attention toward private markets.
Read at Fortune
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