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Private Market Investing vs. Public Markets: Where the Real Opportunities Lie

Money Tree Investing

Release Date: 08/22/2025

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Money Tree Investing

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Mark Flickinger shares his journey from engineering and building small businesses to working in private market investing at BIP Capital, where he helps both entrepreneurs and high-net-worth investors achieve their goals. He explains that private markets have grown as many high-quality companies remain private longer, creating opportunities for alpha that are less available in public markets, especially as IPO thresholds have risen. Flickinger highlights trends in alternatives, noting that while AI attracts attention, compelling private businesses can now be accessed at lower entry costs.

We discuss...

  • Mark Flickinger combines his engineering background with investment expertise to support both business owners and high-net-worth investors.
  • Private markets have grown in importance as alternatives, moving beyond hedge funds to include a wide range of private companies.
  • Value creation that once happened in small-cap public stocks is now largely occurring in private companies.
  • Only one out of ten U.S.-based companies with $100 million or more in revenue is public, leaving most growth in private markets.
  • Entrepreneurs increasingly stay private due to regulatory burdens and the ability to grow without going public.
  • Business development companies (BDCs) were created to simplify private market investing for U.S.-based companies and investors.
  • Entrepreneurs are increasingly using a hybrid approach of equity and debt to raise capital without overly diluting ownership.
  • Taking on a partner or investor is worthwhile if they bring expertise and add significant value to the business.
  • Debt can be advantageous if the business grows faster than the interest cost, making leverage an effective tool.
  • Capital should be taken strategically to overcome growth hurdles, not just for the sake of raising funds.
  • Many business owners excel in specific phases of growth and benefit from focusing on their strengths rather than the CEO role.
  • The private credit market is likely to expand further, while banks continue to reduce direct lending to businesses.
  • A robust AI plan is now a key factor in evaluating a company’s long-term potential, beyond just naming conventions.

Today's Panelists:

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For more information, visit the show notes at https://moneytreepodcast.com/private-market-investing-mark-flickinger-740