TLDR:
- Globacap, a private markets technology firm, is expanding into the private credit space this year.
- Private markets are growing more rapidly than public markets, presenting significant opportunities for investors.
Globacap, a fintech firm specializing in private markets, is making a move into the private credit sector. Co-founder and CEO, Myles Milston, has expressed their plans to target closed-end fund managers in the alternatives space. Milston emphasizes the rapid growth of private markets, which are outpacing public markets at a rate of 1.7 to one. This growth trend has caught the attention of large investors such as pension funds and insurers, who currently hold an average of eight percent of their assets in private markets. However, there is a significant opportunity for growth, with just 0.1 percent of available assets in private markets compared to public markets.
As investor attitudes shift towards allocating more to private markets, Globacap aims to provide services like investor onboarding and automated workflow processes to fund managers. Milston points out the changing investor demographics in private markets, with alternative investment managers seeking capital from a wider range of sources beyond traditional pension funds. This shift towards a more diverse investor base presents operational and cost challenges for fund managers, highlighting the need for third-party services like those offered by Globacap.
Overall, Globacap’s expansion into private credit reflects the growing interest in alternative investments and the changing dynamics of the investment landscape. With private markets showing strong growth potential, the fintech firm is well-positioned to capitalize on this trend and provide valuable services to fund managers navigating a shifting investor ecosystem.
