TY - JOUR T1 - Linkage Between the Private and Public Markets JF - The Journal of Private Equity SP - 54 LP - 69 DO - 10.3905/jpe.2001.319983 VL - 4 IS - 2 AU - Satya Dev Pradhuman AU - William Kan AU - Mohamed Chbani AU - Georgiana Fung Y1 - 2001/02/28 UR - https://pm-research.com/content/4/2/54.abstract N2 - 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. ER -