Private fund assets have tripled in the past decade, surpassing public market growth, as companies stay private longer and grow in value. Interest in private assets has led to the development of interval funds and ETFs with limited exposure due to SEC regulations.

ETFs offer retail investors access to private markets, with some funds providing exposure to private credit and private equity. State Street Investment Management introduced two private credit ETFs with 20% private credit exposure, outperforming benchmarks last year.

ERShares Private-Public Crossover ETF includes 10% of its assets in SpaceX, but the valuation of these holdings is unclear. The Baron First Principles ETF holds Elon Musk’s xAI directly, but private equity valuations remain a concern. Asset managers are expanding product and portfolio teams to educate investors on private markets and ETFs.

Private equity ETFs may not offer the same experience as traditional venture capital investments, given that many companies are large and late-stage. Asset managers are focusing on investor education in both private markets and ETFs to meet growing demand and navigate regulatory challenges.

Read more at Yahoo Finance: Are ETFs That Hold a Little Bit of Private Assets a Big Deal?