Morningstar Introduces Industry's First Global Unicorn Index Series
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This new series of market indexes combines the leading VC data, analytics, and insights from PitchBook, an independent subsidiary of Morningstar, with the indexing best practices of Morningstar Indexes, one of the fastest-growing global index providers.
"In today's market, investors are increasingly looking to nontraditional asset classes like private markets for portfolio diversification and investment opportunity," said
According to Morningstar research, private capital markets have grown substantially in the last decade, with more companies staying private longer or pursuing less traditional funding strategies. This trend has fueled a growing number of "unicorns," or VC-backed companies valued at
Once only accessible to sophisticated investors like pension funds and the ultra-high net worth, late-stage VC-backed companies are increasingly making inroads into individual portfolios through retirement plans and ownership of "crossover" mutual funds. But investor access and insight into the late-stage VC market has not improved as quickly as the market has grown. This market has been difficult for index providers to track due to its illiquidity, lack of reporting standards, and no mark-to-market pricing capability.
The Morningstar PitchBook Global Unicorn Indexes, a series of 11 global, regional, and single country indexes, address these challenges as the first daily published unicorn market benchmarks. The index series employs a proprietary three factor mark-to-model pricing methodology to provide more frequent valuations for the asset class. The model employs a range of valuation measures and comparable data from private and public market peers to bring transparency to an asset class that has been hard for investors to track.
"Our new unicorn indexes will go a long way toward bringing transparency to what has become a significant segment of the capital markets," said
"This product is a unique way to deliver PitchBook's extensive data and insights from its deeply ingrained industry analysts to investors," added
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in
PitchBook is a financial data and software company that provides transparency into the capital markets to help professionals discover and execute opportunities with confidence and efficiency. PitchBook collects and analyzes detailed data on the entire venture capital, private equity and M&A landscape—including public and private companies, investors, funds, investments, exits and people. The company's data and analysis are available through the PitchBook Platform, industry news and in-depth reports. Founded in 2007, PitchBook has offices in
About Morningstar Indexes
Morningstar Indexes, recently named the fastest growing global index provider by Burton-Taylor, was built to keep up with the evolving needs of investors—and to be a leading-edge advocate for them. Our rich heritage as a transparent, investor-focused leader in data and research uniquely equips us to support individuals, institutions, wealth managers and advisors in navigating investment opportunities across all major asset classes, styles and strategies. From assessing risk and return with traditional benchmarks to helping investors effectively incorporate ESG objectives into their investment process, our range of index solutions spans an investment landscape as diverse as investors themselves. We help investors answer today's increasingly complex questions so that they can more easily reach tomorrow's goals.
Please visit indexes.https://indexes.morningstar.com for more information.
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SOURCE Morningstar, Inc.