MSCI Introduces PACS to Standardize Private Asset Classification

MSCI has launched PACS, a proprietary asset classification framework aimed at bringing transparency and consistency to private markets. The initiative addresses the rapid growth of private assets, which has been fueled by institutional allocations and private wealth inflows, yet remains hampered by a lack of standardized metrics.

The new taxonomy covers private companies, real estate, and infrastructure, offering granular classifications for benchmarking and strategy communication. Built on MSCI's legacy of public-market standards like GICS, PACS leverages AI to deliver scalable sector tagging, enhancing comparability across the investment lifecycle.

"Private markets are at an inflection point," said Luke Flemmer, Head of Private Assets at MSCI. The framework arrives as allocators demand clearer tools to navigate opaque alternative investments.