Are private offerings really a good deal?

Since the financial crisis of 2007-2008, the U.S. stock market has been booming. The S&P 500 more than tripled from 2009 to 2017, and was hitting all-time highs as recently as January. During bull markets like this, investors may be tempted to pile into risky investments in search of even more gains.

One area performance-hungry investors may look is non-publicly traded investments — a category that includes venture capital, private equity and initial public offerings (IPOs). When investors are full of confidence and flush with cash, they’re more willing to ignore the significant risks associated…