Kevin Moss, Managing Director at Liberty Street Advisors and Portfolio Manager of the Private Shares Fund joined Keith Black, Managing Director, RIA Channel to discuss private market trends and opportunities in late-stage venture investments.
2022 delivered a stiff decline in IPOs, and at the same time, a steady increase in private unicorns. Due to regulatory hurdles, public market volatility, and the availability of private capital, companies are now going public significantly later or never at all, explains Moss. Investors who limit their portfolio to public market exposure miss out on the capital appreciation and alpha potential that is happening outside of the public markets.
Historically, late-stage venture or pre-IPO investment opportunities have been inaccessible to the advisor community. High minimums, illiquidity, and access to quality managers has created private market and more specifically, venture allocation challenges. The Private Shares Fund, launched by Liberty Street Advisors in 2014, seeks to solve for these obstacles. The venture fund’s unique 40 act interval fund structure delivers access to a diversified pool of late stage ventured-backed companies, with no accreditation requirements, quarterly redemption potential, and an easier subscription process.
Looking back, periods of heightened market uncertainty have been some of the best performing vintage years, explains Moss. With private valuations down, there is a lot opportunity in today’s market to deploy capital to high quality companies at dislocated prices, says Moss.
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