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09/10/2025 – 05:45 AM
Morningstar and PitchBook are joining forces to offer investors a novel approach to navigate the increasingly blurred lines between public and private markets, leveraging their respective expertise in index construction and private market intelligence.
CHICAGO – Morningstar, Inc. (Nasdaq: MORN), has unveiled the Morningstar PitchBook US Modern Market 100 Index (‘Modern Market 100’), aiming to redefine market benchmarks. This index seeks to capture the performance of both publicly listed giants and late-stage, venture-backed private companies.
The rationale behind the Modern Market 100 lies in the evolving dynamics of capital markets. As companies remain private for longer periods, traditional public market indices may not fully represent the investment opportunity set, particularly in sectors such as AI, biotechnology, and fintech. Many innovative firms are opting to delay their IPOs, choosing to scale and mature within the private sphere. Morningstar’s analysis suggests that incorporating late-stage VC-backed companies into equity market exposure can enhance diversification and unlock growth potential in these dynamic segments.
The Modern Market 100 index comprises 90 publicly listed companies and 10 venture-backed leaders, providing a consolidated view of both public and private equities. Companies like SpaceX, OpenAI, and Stripe are included to represent the private equity component. Reflecting the overall market size, the index allocates 90% to public companies and 10% to private firms.
Index construction prioritizes investability through transparent pricing mechanisms, liquidity screens, and quarterly rebalancing. Prices for VC-backed companies are derived from verified secondary market transactions, ensuring more accurate valuations than relying solely on funding round valuations. Public company prices are sourced from official exchange closes, providing real-time market data. This blend of data sources helps to create a more representative and dynamic benchmark.
“As private investments become increasingly prevalent in investor portfolios, the need for comprehensive data and relevant benchmarks to reflect the modern market landscape grows,” said Ron Bundy, President of Morningstar Indexes. “Our new index provides investors with a unified framework to assess public and private market leaders, allowing for a more equitable comparison of investment opportunities.”
Joanna McGinley, EVP at PitchBook, adds that “PitchBook’s depth of private market data and research expertise is uniquely positioned to facilitate the creation of this index.” She stated, “The Modern Market 100 combines our proprietary insights of venture-backed companies with the transparency of public markets, giving investors an actionable perspective of how key modern companies perform through all stages of their lifecycle. We believe this will push the industry forward, helping investors better understand and navigate the convergence of private and public markets.”
The launch of the Modern Market 100 highlights the increasing sophistication in index construction and the growing recognition of the importance of private markets in the overall investment landscape. The index provides investors with a new tool to benchmark performance, assess risk, and potentially allocate capital across both public and private equity markets. As the index gains traction, it could influence investment strategies and drive further innovation in financial product development.
About Morningstar Indexes
Morningstar Indexes provides index solutions spanning an investment landscape as diverse as investors themselves.
About PitchBook, a Morningstar company
PitchBook offers data and analysis of capital markets.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia.
©2025 Morningstar, Inc. All Rights Reserved.
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