Morningstar launches benchmark tracking both public and private markets in 1 index — here’
September 29, 2025
Financial services firm Morningstar has launched a new benchmark — which it says is the first of its kind — that tracks 100 of the top public and private market companies in one index.
Titled the Morningstar PitchBook US Modern Market 100 Index, it follows the performance of 90 publicly traded and 10 venture-backed companies, including SpaceX and OpenAI.
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Morningstar says this 90/10 mix “mirrors the actual structure of the modern equity landscape [1].” The index relies on secondary market transactions for private equity data, while using official exchanges for public companies.
Sanjay Arya, head of innovation at Morningstar Indexes, explained to CNBC that companies that can raise a lot of capital are able to stay private for longer [2].
“So, to ignore them, I think you’re missing out on some of the fastest, most dynamic companies out there,” he said.
If market indexes are meant to reflect the state of the economy or where investors should be looking for opportunities, Arya argues private markets must be part of the equation.
“You can’t do that on public markets alone,” he said.
It should be noted, however, for retail investors (individual, non-professional investors), buying shares in private companies can be difficult because of securities laws that prevent private firms from selling securities to the general public.
Investing in private companies is typically limited to “accredited investors” — certain entities or wealthy individuals (generally worth $1 million, excluding primary residence). These investors are permitted by the Securities and Exchange Commission to invest in more risky and unregulated securities. The idea behind this is they’re in a better position to sustain potentially huge losses.
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Private investing can come in several forms. Angel (early-stage) investing involves startups getting favorable funding to get off the ground, and is often risky. Venture capital investments can feed growth and offer management and operational assistance. Late-stage investments are referred to as private equity investing.
Despite generally being out of reach for everyday investors, private equity investing may soon become more accessible to the general public.
On Aug. 7, President Donald Trump signed an executive order instructing the Secretary of Labor to clear a path for 401(k) plans to invest in alternative assets, such as private equity, real estate and commodities.
So, while you probably still won’t directly be able to invest in private companies, your workplace plan may soon offer private equity options.
Critics argue, however, that private equity investments often come with higher fees and no clear evidence of better results. It can also take years for investments to pay off, which may extend your time horizon. Shares can also be difficult to liquidate, which may be troublesome if you need to divest quickly.
Given the higher risk with investing in private companies, choosing this path should not be undertaken without extensive research, and may not be the best choice for novice investors. Even the index introduced by Morningstar inherently carries risk in the form of limited diversity, as it skews toward large-cap companies, which currently lean heavily toward big tech.
Any move you make toward investing in private assets should be just as considered as any other financial decision, and always with a realistic view of what you can afford today and in the future.
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[1]. Morningstar. “Introducing the Morningstar PitchBook US Modern Market 100: The First Benchmark to Track Public & Private Market Companies in a Single Index”
[2]. CNBC. “More investors want public and private assets in their portfolio. Now there’s a benchmark to track this combo”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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