As I was reviewing the latest J.P. Morgan Guide to the Markets, one chart stood out. It showed the distribution of U.S. companies with more than $100 million in annual revenue, comparing public companies to private ones.
The contrast is hard to ignore.
There are roughly 3,000 public companies above that revenue threshold, but nearly 18,000 private companies of the same size. In other words, about 86% of sizeable U.S. businesses operate entirely outside the public markets.
And these aren’t small, emerging ventures. They are established companies that drive employment, production, and economic output across the country.
A closer look makes the picture even clearer:
- 93% of companies generating $100–$499 million annually are private
- 85% of companies generating $500 million – $1 billion annually are private
- Even the majority of $1 billion+ companies are private
This means the middle-market and lower–large-cap segment, the real backbone of the U.S. economy, remains predominantly private.
What This Means for Investors
Many investors assume that the public markets represent the full universe of opportunities. But as this chart highlights, the public markets reflect only a small portion of the country’s true economic landscape.
The companies that don’t appear on stock exchanges still need capital. They refinance debt, acquire competitors, expand operations, and invest in growth. But they don’t tap public bond markets or issue publicly traded equity.
Instead, they rely on:
→ Private credit
→ Direct lending
→ Specialized private financing groups
This private financing ecosystem is where attractive, less volatile, and often more flexible opportunities can be found.
At Eppler Capital, this aligns directly with what we see in our work:
the most compelling opportunities today often sit outside the traditional public markets.
The Bottom Line
The Guide to the Markets reinforced a key insight:
If your portfolio only reflects the public markets, you’re missing the majority of where
real economic activity, and many of today’s best opportunities, actually exist.
The private markets aren’t just an alternative.
They’re the majority.
Want to Discuss This Further?
If you’d like to explore how private-market and alternative income strategies work, or how they might fit into your broader financial plan, you can schedule time with me here:
Book a Call with Craig