In this digital age, financial markets connect investors from around the world like never before. However, the distinction between private and public markets remains stark, not just in terms of inefficiency but also in the opportunities they present.
The Illiquidity Problem and the Opportunity Beyond
Source: Pointsville Research
Private capital markets, characterized by their restricted access and lack of public trading platforms, are vast yet notoriously illiquid. This illiquidity significantly hampers value creation, as it prevents efficient trading and financing. In contrast, public markets thrive on liquidity, facilitating immense volumes of trade and capital movement.
Defining the Markets
First let’s clarify what we mean by private and public markets:
Private Markets: These markets deal with investments not available for public trading. They are typically accessed by institutional investors, high-net-worth individuals, and private equity firms. For example, a startup raising funds through venture capital is partaking in the private market.
Public Markets: In contrast, public markets involve securities that are listed on a stock exchange, available for purchase by the general public. A quintessential example is a company listed on the New York Stock Exchange.
A Comparative Glance
Private Markets: Annually, private markets raise nearly twice as much capital as their public counterparts. Yet, for every dollar in these markets, a mere 3% is traded.
Public Markets: In stark contrast, public markets see 24 times the trading volume, with an annual exchange of capital touching the $33 trillion mark, against the $100 billion in private markets.
Pointsville’s Opportunity
Source: Pointsville Research
The demand for alternative assets is growing. According to Goldman Sachs research in 2023, private equity is the 2nd largest asset allocation among family offices, comprising over 1/4 of their investments.
At Pointsville, we are revolutionizing the landscape of private capital markets and bridging the gap with emerging digital financial technologies.
We are building an end-to-end alternative asset factory. Our mission is clear: to transform the illiquid, opaque nature of private markets into a realm of opportunity, accessibility, and growth.
Our platform is designed to convert real-world assets into digitized alternative assets, offering an easy-to-use, all-in-one platform.
Key Features and Capabilities
Programmable Ownership and Regulatory Tools: We offer programmable ownership solutions, ensuring that assets can be easily managed, transferred, and regulated in compliance with the latest legal standards.
Asset Issuance and Management: Pointsville simplifies the issuance and management of alternative assets, making it straightforward for users to navigate the complexities of the market.
Regulatory Compliance Facilitation: Understanding the importance of compliance, our platform is equipped with tools designed to streamline the regulatory process, ensuring that all assets meet the necessary legal requirements.
Pointsville is part of a movement towards democratizing the financial markets, making them more accessible, transparent, and efficient. By leveraging leading capital markets, regulatory, loyalty, and blockchain technologies, we are not just envisioning the future of finance — we are actively building it.
