Tracking Unicorn Companies in U.S. Mutual Funds
The number of unicorn companies, or private companies valued over $1 billion, exploded from 39 in 2013 to over 1,200 in 2022. Fund managers have started to invest in these private firm equities to avoid missing out on their robust growth periods.
This report assesses the historical trends in mutual fund ownership of private-firm equities. We examine the winners and losers in the space as well as the most widely held companies.
- An overview of the spectrum of private equity investing opportunities.
- Why valuations of unicorn companies have been inconsistent and can be slow to adjust to market conditions.
- How lockup periods influence returns on private-equity investments.
- A look at the high-profile unicorns, like WeWork, that serve as cautionary tales for mutual fund investors.