Morningstar Launches Europe Modern Market 50 Index Blending Public and Private Equities
Event summary
- Morningstar introduced the Europe Modern Market 50 Index on April 23, 2026, combining 45 publicly listed and 5 late-stage private European companies.
- The index includes firms like HSBC, Shell, Revolut, and Mistral AI, reflecting a growing trend of companies staying private longer.
- Venture capital-backed companies now account for nearly 11% of the combined public and private global equity markets, up from 1% twenty-five years ago.
- The index uses transparent pricing, liquidity screens, and quarterly rebalances, with prices calculated daily.
The big picture
Morningstar's new index reflects a broader industry shift towards integrating private market exposure into traditional investment strategies. With venture capital-backed companies now representing a significant portion of global equity markets, investors are seeking tools to capture growth beyond public listings. The Europe Modern Market 50 Index is part of Morningstar's strategy to provide comprehensive solutions for navigating the convergence of public and private markets.
What we're watching
- Private Market Expansion
- How the growing number of billion-dollar private companies in Europe will impact investor strategies and portfolio diversification.
- Index Adoption
- Whether institutional investors will increasingly use blended public-private indexes for asset allocation.
- Regulatory Scrutiny
- The pace at which regulators may scrutinize the integration of private companies into traditional investment benchmarks.
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