Forge Global’s Private Market Index to be Tracked by Accuidity Strategy, Offering Diversified Exposure to Late-Stage Companies
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Forge Global Holdings' partnership with Accuidity to track the Forge Accuidity Private Market Index represents a significant development in the realm of private market investing. This collaboration leverages Forge's robust marketplace infrastructure and Accuidity's asset management expertise to offer investors a novel means of engaging with the private sector. The index includes high-profile companies such as SpaceX and Epic Games, which are indicative of the burgeoning potential within the late-stage venture-backed space.
From a financial perspective, the introduction of such an index can be seen as a democratizing force within the investment landscape. It potentially lowers barriers to entry for investors who previously may have been excluded from private market opportunities due to the high capital requirements or lack of access. Moreover, the index's modified capitalization weighting methodology may provide a more balanced representation of the private market, as opposed to the traditional venture capital approach that can be heavily weighted towards a few large players.
However, it's important to note that while the index may offer diversification, investing in private companies carries a distinct risk profile compared to public equities. Liquidity concerns, valuation complexities and limited financial disclosures are factors that investors must weigh carefully. Moreover, the performance of such indices can be difficult to predict given the opaqueness of the private market. Hence, while the index may represent an attractive proposition, it is not without its challenges.
Forge's move to partner with Accuidity and create an index tracking late-stage, venture-backed private companies signifies an evolving trend in the investment community where there's an increasing appetite for alternative assets. This index could potentially serve as a benchmark for private market performance, which has been historically difficult to quantify due to the bespoke nature of private investments and the lack of standardized data.
Given the composition of the Forge Accuidity Private Market Index, its performance will be closely watched by investors and analysts alike as a barometer for the health and trajectory of the innovation economy. The presence of high-growth companies in sectors such as technology and aerospace within the index could also act as a leading indicator for future trends in the broader economy.
For Accuidity, the adoption of this index within their Megacorn strategy may enhance their product offerings and attract investors seeking exposure to disruptive companies before they go public. However, it's essential to monitor how the index is received in the market, its correlation with public markets and its ability to withstand economic downturns. The success of this index could influence the development of similar products and spur further interest in private market investing.
The creation of the Forge Accuidity Private Market Index could potentially reflect broader economic trends, particularly those related to the growth and scaling of innovative ventures. By capturing the performance of a segment of the economy that is not directly observable through public markets, the index could provide valuable insights into the entrepreneurial ecosystem and its contribution to economic growth.
While the index may serve as a tool for investors to tap into private market growth, its impact on the economy hinges on its ability to accurately represent the performance of its constituents and to facilitate the efficient allocation of capital. If successful, it can contribute to the dynamism of the private sector by channeling investment towards promising ventures.
However, the concentration of investment in late-stage companies, as opposed to early-stage startups, may have implications for the distribution of capital across the entrepreneurial lifecycle. Economically, this could influence the types of innovation that receive funding and ultimately shape the direction of technological progress and competitiveness.
Accuidity to track latest Forge index, providing investors with access to institutionally managed strategy of dozens of venture-backed late-stage private companies
The Forge Accuidity Private Market Index tracks the performance of 60 venture-backed, late-stage, private growth companies including SpaceX, Anduril, Scale AI, Epic Games, Chime and others. All names are ranked according to a modified capitalization weighting methodology with an annual rebalance frequency.
“We believe index investing supports vibrant capital markets, providing investors with diversified, cost-effective, and simplified access to venture-backed, private company growth,” said Kelly Rodriques, CEO of Forge Global. “We expect our partnership with Accuidity to increase the market reach of our product offerings, creating significant benefits for private market participants.”
Forge operates one of the largest platforms for private market trading with multiple sources of private market data, enabling the research and analysis needed to create an investable index. The Forge Accuidity Private Market Index is backed by Forge’s extensive private market expertise and robust data platform, as well as Accuidity’s deep institutional asset management experience. Eligible investors can also access the Accuidity Megacorn Strategy through the Forge platform.
“At Accuidity, we view index investing as a catalyst for greater private market access and participation,” said Accuidity Founder and Co-President Vince Gubitosi. “We’re excited about this new index and the potential benefits for our investors in leveraging Forge’s proprietary private market data offerings and trading DNA.”
Accuidity is led by Gubitosi and fellow co-founder Mark DeNatale, who each contribute 25+ years of asset management experience to Accuidity, which they founded in 2021 to provide investors with index-based access to the private market. As President of Geode Capital Management, Gubitosi led the development and launch of
About Forge
Forge is a leading provider of marketplace infrastructure, data services and technology solutions for private market participants. Forge Securities LLC is a registered broker-dealer and a Member of FINRA that operates an alternative trading system.
About Accuidity
Accuidity was formed with a vision to bring ACCESS, LIQUIDITY, and TRANSPARENCY to private market investing via a suite of institutional index funds. The firm was founded by Vince Gubitosi and Mark DeNatale, executives with 50+ years of combined institutional experience across both the public and private markets.
Forward-Looking Statements
This press release contains “forward-looking statements,” which generally are accompanied by words such as “believe,” “may,” “could,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “target,” “goal,” “expect,” “should,” “would,” “plan,” “predict,” “project,” “forecast,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict, indicate or relate to future events or trends or Forge’s future financial or operating performance, or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding Forge’s beliefs regarding future opportunities for Forge to expand its business through the Forge Accuidity Private Market Index. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, while considered reasonable by Forge and its management, are subject to risks and uncertainties that may cause actual results to differ materially from current expectations. You should carefully consider the risks and uncertainties described in Forge’s documents filed, or to be filed, with the SEC from time to time, including in its Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. There may be additional risks that Forge presently does not know of or that it currently believes are immaterial that could also cause actual results to differ materially from those contained in the forward-looking statements. In addition, forward-looking statements reflect Forge’s expectations, plans or forecasts of future events and views as of the date of this press release. Forge anticipates that subsequent events and developments will cause its assessments to change. However, while Forge may elect to update these forward-looking statements at some point in the future, Forge specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Forge’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
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Forge
Lindsay Riddell
press@forgeglobal.com
Source: Forge Global
