The Not-So-Private Party
Let’s be honest, the appeal of going public has lost some of its lustre. Why would a fast growing tech unicorn want the headache of quarterly earnings calls, activist investors, and the relentless scrutiny of the public eye when it can raise colossal sums of money in private? Companies are staying private for longer, creating a rather awkward problem for their early investors and employees. They’re sitting on paper fortunes with no easy way to turn them into cash.
This is where the real action is. A vast, sprawling secondary market is emerging to provide that much needed liquidity. It’s a marketplace for shares in companies you can’t just buy through your usual broker. And Wall Street, never one to miss an opportunity, is scrambling to build the infrastructure to control it. Morgan Stanley’s move is just one of many. They all want a piece of the action.