What Next for Private Markets?
Private markets have been booming of late. Over the last ten years allocation to private markets has doubled. That is why people such as Lincoln Frost as well as others within the sector (mentioned below) are there for people who have an interest into private equity assistance and need help.
However, this industry still suffers from notorious problems related to poor asset and price discovery, leading to low liquidity levels for investors. There is a growing notion that blockchain technology is part of the solution to these problems. Private markets are currently opaque because the underlying infrastructure is one that is unable to offer trusted collaboration between stakeholders whilst delivering the required compliance standards. By applying control and compliance to a network that can be accessed digitally, a very interesting value proposition can be proposed:
Greater data transparency – through the utilisation of a shared infrastructure, blockchain provides visibility over fragmented value chains
Better market access – Private opportunities that only get presented to close networks can be broadcasted on a global network
Improved liquidity – The use of a digital and immutable ledger that allows for a faster and more efficient transfer of value will increase private market liquidity
What are your thoughts?
This is a small excerpt taken from an ebook we published with PwC this month, you can download the full copy here. As always, below you will find a summary of the top news in the digital assets industry.