WELCOME TO OUR MONTHLY NEWSLETTER.
The source for navigating the world of alternative investments
Public small-cap indices no longer tell the full story. Even with signs of life in the IPO markets, an increasing number of high-growth companies are staying private. As a result, a once-healthy supply of promising small and mid-cap companies that would have historically eyed an IPO has been siphoned away from the public markets.
We see two implications:
- The workhorse public market index funds may deliver less of what they were designed for, and
- Traditional portfolios may miss out on meaningful diversification and return potential.
Discover why private equity is becoming essential for modern investors and how access is expanding in our recent Private/Public Equity article.
Dan Vene
Co-Founder and Managing Director,
Co-Head of iCapital Solutions
CHART OF THE MONTH
Public-to-Private Activity is Outpacing IPO Volumes by 1.7x
Public-to-private deal value has exceeded IPO proceeds by 1.7x over the last 15 years. This has resulted in $1 trillion shift of capital to the private markets (Public Capital Leakage).
Source: Renaissance Capital, PitchBook, iCapital analysis. Note, IPO data includes IPOs and direct listings with a market cap of at least $50mm and excludes closed-end funds and SPAC. For illustrative purposes only. Past performance is not indicative of future results. Future results are not guaranteed.
NEW FROM iCAPITAL
Private Markets & Hedge Fund Strategy Ratings – 2H 2025
Capital markets activity, trade policy, and visibility to the U.S. Federal Reserve policy path were the overarching inputs that went into our rating analysis. Still, the second quarter of 2025 ended with more momentum than it started with. Overall, we’re optimistic about the deal environment, reflected in positive views for middle-market buyout, venture, and event-driven strategies.
Synergy25 Live | Ep. 04
Exploring the Future of Alternative Investments
In this episode, Bill Coppel, Director of Client Growth at TradePMR, and Ryan Neal, Senior Editor at TradePMR, sit down with Scott McSweeney, Vice President of Platform Partnerships at iCapital, to discuss the shifting alternative investment landscape and the new opportunities it’s creating for RIAs.
MARKET PULSE
Breaking Down the Tax Bill’s Impact On Private Markets
The One Big Beautiful Bill Act (OBBBA) delivers lasting tax clarity and pro-growth reforms with far-reaching implications for private markets. This Market Pulse unpacks the bill’s macro impact and key provisions—highlighting opportunities across real estate, private equity, and venture capital.
MONTHLY MARKET ROUNDUP
Strategic Shift: How Real Estate Debt Is Redefining Investment Strategy
Real estate debt is emerging as a strategic investment opportunity, offering institutional investors consistent income, downside protection, and diversification amid shifting market dynamics and bank retrenchment. As regulatory pressures reshape traditional lending, alternative lenders are stepping in to fill the gap, redefining the role of real estate debt in portfolio construction.
The End of the Beginning: US Tariffs and Private Markets Post-August 1
As new tariff deals give private markets investors a clearer picture of the road ahead, HarbourVest’s latest commentary explores the questions they believe are top of mind.
Navigating Secondary Growth: Opportunities Beyond the Horizon
Secondaries have been one of the fastest-growing areas in private equity, and current market volatility and liquidity needs are creating even more opportunities. Neuberger Berman believes today’s environment—marked by increased portfolio management by LPs and the rise of GP-led deals—could drive a more significant secondary cycle than in the past.
IN CASE YOU MISSED IT
What is Venture Capital?
Venture capital funds are designed to generate returns by investing in entrepreneurs and start-up businesses with the potential for high growth and significant value creation. It is the riskiest strategy within the private equity asset class, but also the one with the greatest return potential.
IMPORTANT INFORMATION
The material herein has been provided to you for informational purposes only by Institutional Capital Network, Inc. (“iCapital Network”) or one of its affiliates (iCapital Network together with its affiliates, “iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.
This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as, legal, tax or investment advice, a recommendation, or as an offer or solicitation to buy or sell any security, financial product or instrument, or otherwise to participate in any particular trading strategy. This material does not intend to address the financial objectives, situation, or specific needs of any individual investor. You should consult your personal accounting, tax, and legal advisors to understand the implications of any investment specific to your personal financial situation.
ALTERNATIVE INVESTMENTS ARE CONSIDERED COMPLEX PRODUCTS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. Prospective investors should be aware that an investment in an alternative investment is speculative and involves a high degree of risk. Alternative investments often engage in leveraging and other speculative investment practices that may increase the risk of investment loss; can be highly illiquid; may not be required to provide periodic pricing or valuation information to investors; may involve complex tax structures and delays in distributing important tax information; are not subject to the same regulatory requirements as mutual funds; and often charge high fees. There is no guarantee that an alternative investment will implement its investment strategy and/or achieve its objectives, generate profits, or avoid loss. An investment should only be considered by sophisticated investors who can afford to lose all or a substantial amount of their investment.
iCapital Markets LLC operates a platform that makes available financial products to financial professionals. In operating this platform, iCapital Markets LLC generally earns revenue based on the volume of transactions that take place in these products and would benefit by an increase in sales for these products.
The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market, or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third-party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward-looking statements or to any other financial information contained herein.
Securities products and services are offered by iCapital Markets, an SEC-registered broker-dealer, member FINRA and SIPC, and an affiliate of iCapital, Inc. and Institutional Capital Network, Inc. These registrations and memberships in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services discussed herein. Annuities and insurance services are provided by iCapital Annuities and Insurance Services LLC, an affiliate of iCapital, Inc. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc. Additional information is available upon request.
© 2025 Institutional Capital Network, Inc. All Rights Reserved.
