WARWICK LUCAS: Revisiting the private vs listed debate
The trade-off between the benefits of private control or ownership and the benefits of ready liquidity through being listed is a long-standing one
A recent survey by EY noted that in the past decade, private markets have more than doubled from $9.7-trillion in assets under management (AUM) in 2012, and are estimated to have reached $22.6-trillion AUM by end-2022.
Given that global stock market capitalisation is about $110-trillion, it would suggest that the hand-wringing about declining listings on most stock markets (not just the JSE) has not been matched by actually listening to the answers. No doubt the low cost of funding for private market activity (from, say, 1990 to 2021) has accelerated the trend, but the environmental drivers remain intact...
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