Creation on public holding of private companies

Abstract

Authors: Ilya Markovich Partyin - National Research University "Higher School of Economics." Email: ipartin@hse.ru

Individual investor has a wide range of potential assets, which can be included in investment portfolio. At the same time, when one considers investments in equity, he would be bound by the choice between different public companies’ shares. The only possibility to invest in private companies’ shares is to invest in private equity funds, where minimal investment amount is usually substantial. This article describes a possibility for creation of new business model of public holding company, which owns minority stakes in a large number of private companies. Creation of such a holding will provide a possibility for individual and professional market participants to invest in private companies’ shares without involvement of private equity funds.