ETF TV

Sanjay Arya, Morningstar Indexes, discusses the growing interest in private markets


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ETF TV Welcomes Sanjay Arya, Morningstar Indexes to discuss the growing interest in private markets


ETF TV, the premier source for insights into the world of exchange-traded funds (ETFs), issuers, and investments, is pleased to announce its latest episode featuring industry expert Sanjay Arya, Head of Innovation at Morningstar, joins Margareta Hricova and Deborah Fuhr on ETF TV to discuss the growing interest in private markets. 


There's a lot of interest in private markets. Why is that

and what does that cover?

  • Coverage: Private markets include four areas:
  • private equity (including venture capital), private debt, infrastructure, and
    real estate.
  •  Growth: Significant growth over the past two
  • decades due to regulatory changes.
  •  Key Regulations: Sarbanes-Oxley (2002),
  • Dodd-Frank (2012) increase the burden on publicly listed companies.
  •  Favorable Conditions: Jobs Act (2012) boosts
  • participation in private companies by increasing investor numbers.
  • Nontraditional Investors: Corporate VCs, hedge
  • funds, and mutual funds entering the space bring more capital.

    What are some of the challenges in creating indices and

    valuing Private Equity?

    •  Data Accessibility: Difficult to access data due
    • to lack of disclosure requirements for private companies.
    • Valuation: Market agreement on asset values is
    • crucial.
    •  Governance: Importance of high standards and
    • avoiding conflicts of interest.
    •  Solutions for Challenges:
    • Pitchbook Data: Access to best private company
    • data through Pitchbook.
    • Industry Research: Collaboration with industry
    • experts for accurate pricing.
    • Experience: Morningstar's 25 years of experience
    • in building indexes helps meet requirements.

      How can investors invest in Private Equity?

      • Current State: Challenging asset class to invest
      • in.
      • Evolution: Comparison to fixed income markets;
      • potential growth through secondary markets.
      • Opportunities: Platforms available for trading
      • late-stage venture-backed companies like SpaceX and Open AI.


        This episode provides valuable insights into the evolving

        private markets landscape and where opportunities for ETFs may evolve.

        The episode was sponsored by Morningstar Indexes.  For further information https://indexes.morningstar.com/

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        ETF TVBy Deborah Fuhr & Margareta Hricova


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