PrimaryMarkets CEO Marcus Ritchie appeared on The Open program on Ausbiz to discuss how volatility in public markets has seen investors shift their focus to private markets.
Investors have seen public equity markets deteriorate this year, let by the S&P/ASX200 Total Return Index falling 11.6% in the six months to September 2022.
Over the same period, PrimaryMarkets saw over $100M in equities transacted on its Platform within private companies.
Marcus Ritchie says a key difference between public and private markets is that private companies tend to command a lower trading multiple.
“The benefit for investors is that private companies offer better value. Investors are responding to that now, especially as they seek alternative opportunities,” Ritchie says
One of the companies trading on the PrimaryMarkets Platform, Virtual Gaming World, reported revenue and earnings growth in excess of 50% in the 2021/22 financial year and an operating profit of more than $550 million, showing that some private companies remain well capitalised and operating well in the current climate.
Watch the full video below.