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Retail Money Is Pouring Into Private Markets. What Could Go Wrong?
OpenAI’s soaring valuation is fueling a rush of newcomers into private assets—from 401(k) savers to anyone with a fractional-ownership app. What they don’t see could cost them.
Illustration: Vincent Kilbride
OpenAI, the world’s most valuable startup, has soared more than 350% on secondary exchanges since the start of last year, vastly outperforming the likes of stock market darling Nvidia Corp. and helping to make private companies the hottest thing in finance.
All of which inspires FOMO among retail investors. With trillions of dollars expected to flow into private markets from mom-and-pop investors desperate to get a piece of the action, concern is rising that amateurs may be jumping in at exactly the wrong moment.