PT - JOURNAL ARTICLE AU - Satya Dev Pradhuman AU - William Kan AU - Mohamed Chbani AU - Georgiana Fung TI - Linkage Between the Private and Public Markets AID - 10.3905/jpe.2001.319983 DP - 2001 Feb 28 TA - The Journal of Private Equity PG - 54--69 VI - 4 IP - 2 4099 - https://pm-research.com/content/4/2/54.short 4100 - https://pm-research.com/content/4/2/54.full AB - Curious similarities between flows into venture capital and aggressive small cap growth funds in the public markets, and between buyout strategies and small cap value fund flows, may offer insights into the “timing of private equity deals.” Only recently have the outflows of small cap value stopped and the flows turned positive. This shift might indicate that buyout strategies may take precedence over venture investments in the private equity world over the next eighteen months. Private Market Value, or what a firm is worth if taken private, should become more relevant among investors as small and microcap firms exhibit recession-level valuation multiples. Despite a significant pickup in mergers and acquisition (M&A) in the U.S. small and microcap markets, the financial buyer has been notably absent. Although the lure of venture capital investments has been siphoning funds from buyout strategies, with the collapse in aggressive growth valuations, buyout-style investments may become much more appealing.