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Economy
Related: About this forumThe Fuel Powering Corporate America: $2.4 Trillion in Private Fundraising
The stock market gets the attention, but that's not where the action is. Private fundraising has now usurped stock and bonds.
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The Fuel Powering Corporate America: $2.4 Trillion in Private Fundraising
The boom is transforming how companies grow, concentrating investing in fewer hands and raising concerns about oversight
By Jean Eaglesham and Coulter Jones
http://twitter.com/jeaneaglesham
Jean.Eaglesham@wsj.com
http://twitter.com/coulterjones
coulter.jones@wsj.com
April 2, 2018 11:34 a.m. ET
When the messaging app Telegram set out to raise billions of dollars this year for a project to launch a cryptocurrency, it shunned the stock market and instead invited a select group of firms to invest in its virtual coins.
These investors would be backing a project yet to be built. Little was known about the private companys ownership or finances. Even so, 81 investors stepped forward to pour in $850 million, with other financing rounds still to come.
It was a mark of the dramatic rise of private capital markets, which have leapfrogged public markets to become the most popular way for companies to raise money in the U.S., a phenomenon that in some ways is changing the very way companies run and operate. ... Private markets have reshaped the financial landscape, said Jason Thomas, director of research at private-equity firm Carlyle Group LP. The growth of private capital is across the economy.
With little information disclosed about money raised privately, including the identity of investors, it is difficult to get a clear picture of whats happening in these markets. An analysis by The Wall Street Journal found they have more than doubled in size over the past decade, surpassing the growth of public stocks and bonds available to all investors.
....
Miriam Gottfried and Maureen Farrell contributed to this article.
Write to Jean Eaglesham at jean.eaglesham@wsj.com and Coulter Jones at Coulter.Jones@wsj.com
The Fuel Powering Corporate America: $2.4 Trillion in Private Fundraising
The boom is transforming how companies grow, concentrating investing in fewer hands and raising concerns about oversight
By Jean Eaglesham and Coulter Jones
http://twitter.com/jeaneaglesham
Jean.Eaglesham@wsj.com
http://twitter.com/coulterjones
coulter.jones@wsj.com
April 2, 2018 11:34 a.m. ET
When the messaging app Telegram set out to raise billions of dollars this year for a project to launch a cryptocurrency, it shunned the stock market and instead invited a select group of firms to invest in its virtual coins.
These investors would be backing a project yet to be built. Little was known about the private companys ownership or finances. Even so, 81 investors stepped forward to pour in $850 million, with other financing rounds still to come.
It was a mark of the dramatic rise of private capital markets, which have leapfrogged public markets to become the most popular way for companies to raise money in the U.S., a phenomenon that in some ways is changing the very way companies run and operate. ... Private markets have reshaped the financial landscape, said Jason Thomas, director of research at private-equity firm Carlyle Group LP. The growth of private capital is across the economy.
With little information disclosed about money raised privately, including the identity of investors, it is difficult to get a clear picture of whats happening in these markets. An analysis by The Wall Street Journal found they have more than doubled in size over the past decade, surpassing the growth of public stocks and bonds available to all investors.
....
Miriam Gottfried and Maureen Farrell contributed to this article.
Write to Jean Eaglesham at jean.eaglesham@wsj.com and Coulter Jones at Coulter.Jones@wsj.com
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The Fuel Powering Corporate America: $2.4 Trillion in Private Fundraising (Original Post)
mahatmakanejeeves
Apr 2018
OP
So these private corporations are soliciting capital from public corporations
Farmer-Rick
Apr 2018
#2
Angry Dragon
(36,693 posts)1. Interesting
Farmer-Rick
(10,226 posts)2. So these private corporations are soliciting capital from public corporations
Well, you got to go where the money is.
But then will these private corporations go public? Probably eventually.