In recent years, U.S. companies have raised more equity through private offerings available only to institutional and high-net-worth investors than through initial public offerings available to the general public. In addition, the number of U.S. public companies has been steadily declining, and private start-up companies are frequently reaching billion-dollar valuations without opening up to the public for investment.
In our report, Expanding Opportunities for U.S. Investors and Retirees: Private Equity, we examine whether U.S. policymakers should expand access to investments in private companies through private equity funds – investment vehicles that invest in the securities of private companies and that are not registered as investment companies with the Securities and Exchange Commission (“SEC”). Private equity funds include buyout funds that acquire controlling stakes in businesses and venture capital funds that invest in young private companies with high growth opportunities.
