Liquidity Trends in an Evolving Market
In the past, an initial public offering (IPO) was the prevailing avenue for achieving liquidity. However, as companies are staying private longer and access to capital in the private markets continues to increase, alternative paths to providing liquidity to employees and shareholders have emerged. Additionally, the IPO landscape has seen a slowdown in recent years and because the IPO window can be unpredictable, a public listing is not always available to a company. For decision-makers, this tension is especially nuanced—requiring them to balance the constraints of the market, their business goals and the increasing expectations for liquidity.
Key Takeaways from the Research
Companies are staying private longer
With the current market volatility and the growth of private capital markets, more companies are delaying an IPO or are uncertain of what their next move should be.