Key Insights on Liquidity Trends from Private Company Leaders

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.

The perceived value of equity continues to rise

Despite market uncertainty, equity ownership remains crucial for employees and stakeholders.

There is a growing expectation for liquidity events

Companies of all sizes and stages agree there's an increased expectation for liquidity

There is an opportunity for alternative paths to liquidity

Increasing expectations for liquidity among prospective talent—coupled with the desire to stay private longer—creates a unique opportunity for companies to explore alternatives to tender offers, such as controlled liquidity.

When Do Companies Hold Liquidity Events?

Private market decision-makers agree that the timeline for liquidity events often depends on several consideratons: