4 ms·
Cool post. Should be titlted, "A New Path to Liqudity" because of the interesting "private liquidity markets" - I've never heard of one. And it seems these ha
by npk 19y ago
Cool post. Should be titlted, "A New Path to Liqudity" because of the interesting "private liquidity markets" - I've never heard of one. And it seems these have not been discussed before on news.YC. (at least, GSTrUE, oaktree, or OPUS-5.)
Does anyone have experience with these markets? What size company does one need to interested a private equity investor?
ps - If these markets look to be a major pathway to liquidity, it would be great to hear about them at startup school. :)
- slapshot 19y agoPrivate equity usually requires actual profits -- their plan usually is to take a profitable (or at least revenue-generating) company, cut costs and increase revenue by good management, then turn it out to another private equity firm or hold it and operate it for the income stream. Sometimes they'll spin out a company to take it public, but not at the same huge premiums that VCs want. You have to be a reasonably mature company for a private equity deal to make sense. They usually want steady income rather than the 10x growth that a VC pays for, and the valuations reflect that.