Companies like SpaceX don’t need IPOs to fund growth, says fund manager Kevin Moss
“Fit comes down to time horizon and liquidity needs,” he said. “These allocations are typically evaluated for clients with longer time horizons, distinct risk profiles, and lower immediate liquidity needs.”
Private companies now represent a meaningful and growing share of where economic value is being built. A strategy that operates entirely in public markets, Moss argues, may be structurally incomplete.
“Private companies now represent a large and growing share of value creation, so a strategy that’s entirely public may potentially miss a big part of the opportunity set,” he said. “Determining an appropriate allocation for any individual client requires a direct consultation between the client and their financial advisor to evaluate their specific financial situation, investment objectives, risk tolerance, and liquidity needs.”
The pipeline of IPO-ready private companies continues to grow, but Moss does not expect that to resolve the fundamental dynamic. Some will list. Others will be acquired. Some will stay private indefinitely. For advisors looking at private equity and late-stage private growth, the question is less about timing the IPO window and more about whether clients are positioned before it opens.
“The trend is indicating toward staying private longer, and more of these companies exiting through acquisition rather than a traditional IPO,” Moss said. “A public listing is just one of the potential outcomes — sometimes the least attractive.”
