The Doppler Effect in Private Markets

Hearing the Right Signals

In physics, the Doppler Effect explains why a siren sounds different as it moves toward or away from you—its frequency shifts based on relative motion. In private markets, a similar phenomenon occurs: market signals (trends, hype, and data) can sound very different depending on your position and perspective.

For global LPs, distinguishing between real investment opportunities and market noise is critical. Misinterpreting signals can lead to FOMO-driven allocations or missed opportunities. Let’s explore how the Doppler Effect applies to private markets and how LPs can fine-tune their "investment hearing."