Alex Ambroz

And the lowest it's been in the last four years has been 9%.

And that is incredibly important because what that means is that the models upon which deterministically allocators have used to evaluate their expectations of the size of the private portfolio relative to the public and how much they need to commit in private assets each year to maintain that exposure.

Instead, what's happening is

is that private assets are getting to become a larger and larger and larger portion of the total portfolio.

The university endowment, the foundation, the pension, they still need the distributions from that pool of assets.

And so the only thing the allocator can do then is to sell the liquid assets which have been performing well.

So what happens is you get this denominator effect where the private assets become a larger and larger pool because you have to sell the public assets.

And so in 2021 and in early 2022, we saw this huge kind of outlay of private equity funds or firms being sold to either strategic or financial sponsors.

There was a tiny little explosion of some IPOs that happened that had been kind of held up because of COVID-19.

But then once we got past that, I wanted to share with you a critical number that we're seeing.

So vintage 2020 and vintage 2021 funds, half of them, about half, 45%, have a DPI of less than 0.1%.

So 50% less than 0.1.

Yeah, of vintage 2020 and vintage 2021 funds.

Now, it's still only five, six years later since those funds raised.

But something that you see people talk about in other parts of financial markets is the lack of IPOs.

The lack of IPOs in London, on the London Stock Exchange, has cratered to near zero.

In America, IPOs and something that you see a lot of investment firms and allocators and people talking about is maybe private is the new public.

So people are clamoring for shares, for example, in SpaceX or in OpenAI, because a lot of these companies that historically would have gone public years ago, they just stay private forever.

The key for allocators, though, is that they're not getting the expected distributions on a cash basis.

Sometimes they're getting distributions of actual equity securities, or sometimes these funds are pushing the assets into continuation vehicles.