Home / Business and Economy / Morningstar Launches Pioneering Index Blending Public and Private Equities
Morningstar Launches Pioneering Index Blending Public and Private Equities
10 Sep
Summary
- Morningstar develops benchmark to capture public and private equity performance
- Index includes 90 public firms and 10 venture-backed private companies
- Reflects the growing importance of private markets as companies stay private longer
In a move to address the growing investor demand for private market exposure alongside public stocks, Morningstar has developed a groundbreaking benchmark called the Morningstar PitchBook US Modern Market 100 Index. This index, announced on September 10, 2025, is the first of its kind to combine public and private equity performance in a single measure.
The Modern Market 100 is designed to capture the performance of 100 of the largest U.S. companies, with a 90/10 split between public firms and venture-backed private companies. This composition reflects Morningstar's view of the "modern asset universe," where private market opportunities are expanding as companies like OpenAI and Stripe are able to stay private for longer.
According to Sanjay Arya, Morningstar's head of innovation and index products, the index aims to provide investors with a more comprehensive picture of the economy and market sentiment. "Companies don't feel the urge to go public because they can raise a lot of capital," Arya explained. "So, to ignore them, I think you're missing out on some of the fastest, most dynamic companies out there."
The launch of the Modern Market 100 comes at a time when alternative asset managers have gained a significant foothold, with the recent executive order signed by President Trump in August 2025 clearing the path for alternative assets to be added into 401(k) plans.
