Analysts say the trend toward alternative is largely the result of relatively lower expectations for Wall Street investments, stocks and bonds. As the trade war between the U.S. and China escalates and economic indicators weaken, investors have fled to other asset classes. Money managers for pensions and endowments are turning to alternative investments to keep up with expectations set years ago with stakeholders. Growth in smaller public companies has been significantly slower than their private-market counterparts. There has also been a contraction in the total number of public companies, partly due to mergers and consolidation and because managers and investors prefer private ownership.

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