Vanguard wants to get into PE investing

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by JealousEntrepreneur

They want to create a low cost alternative for Softbank Vision fund and others like them and looks to partner with Boston firm HarbourVest Partners, London-based Pantheon and at least one other firm.

Vanguard is evaluating partnerships to make a mix of private-equity funds available to Vanguard clients, the people said.

The talks are in the early stages, and a final decision hasn’t been made. It is possible Vanguard won’t offer a private-equity product in the end.

Vanguard has told private-equity executives it is considering offering private-market strategies to clients of its advisory services, two people said. Its focus would likely be institutions and high-net-worth clients that the firm advises, one person said.

Vanguard has over the years explored the idea of private equity. In 2001 the company announced it struck a deal with Bala Cynwyd, Pa.-based Hamilton Lane to launch a private-equity offering. The firm struggled to hit fundraising targets in the aftermath of the dot-com bust. Vanguard conceded in 2002 that it would be difficult to raise enough to be cost-effective.

So this would lead to even more funding in the private markets that would be availible for startups and even bigger marketcap IPOs, if at all, in the future or not? Is the future of stock trading/investing in private shadow stock markets for institutional/accredited investors?



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