Key Takeaways

• Secondary markets are increasingly competing with IPOs and acquisitions as primary exit strategies for companies.
• Record volumes in secondary transactions highlight the growing importance of these markets.
• Companies are staying private longer, impacting employee liquidity and wealth.
• Founders prefer the privacy of staying private to avoid public market scrutiny.
• Public company dynamics create constant investor pressure, influencing corporate decisions.
• Private investors may hinder transparency by telling management what they want to hear.
• Exceptional CEOs actively seek negative feedback, though most do not.
• The rise of SPVs addresses the need for liquidity in large private companies.
• The Schwab deal with Forge suggests private equity is becoming a recognized asset class.
• CEOs are interested in democratizing investment opportunities for ordinary Americans.
• Private company equity is gaining recognition as a legitimate asset class.
• The dynamics of being public can significantly alter a company’s decision-making processes.
• There is a growing interest in making investment opportunities accessible to retail investors.
• SPVs play a crucial role in providing liquidity and investment opportunities.
• The trend of staying private longer has significant implications for the market and employees.

Guest intro

Brad Gerstner is the founder and CEO of Altimeter Capital, a technology-focused investment firm based in Menlo Park. He has built Altimeter into a prominent investor in public and private tech companies and is a frequent commentator on markets, AI, and the private stock market.

The rise of secondary markets

• Secondary markets are now a principal exit strategy, competing with IPOs and acquisitions.

• In 2025 secondaries are now competing with IPOs and acquisitions as the principal way that these guys are exiting

  — Brad Gerstner

• Secondary transactions have reached record volumes, surpassing previous peaks.

• We’re double that now in terms of secondary transactions

  — Brad Gerstner

• This shift highlights the growing importance of secondary markets in venture capital.
• The increase in secondary market activity reflects current investment trends.
• Understanding the dynamics of secondary markets is crucial for investors.
• Secondary markets provide new exit opportunities for private companies.

Companies staying private longer

• Companies are likely to remain private for extended periods.

• I think it is very clear that companies are going to stay private for longer

  — Brad Gerstner

• Staying private longer has significant implications for employees’ financial situations.
• Many employees are wealthy on paper but cash poor due to extended private status.
• Founders prefer privacy to avoid the scrutiny of public markets.

• Founders don’t want to be under a microscope

  — Brad Gerstner

• The trend of staying private longer affects market dynamics and employee wealth.
• Private companies offer a different environment compared to public market pressures.

Public vs. private company dynamics

• Public companies face constant pressure from investors, influencing decisions.

• Once you’re public, you’re one of thousands of companies, and that’s its own dynamic

  — Brad Gerstner

• The pressure from public markets can significantly impact corporate governance.
• Private investors may provide information that management wants to hear.

• Private investors are often selling to management teams

  — Brad Gerstner

• This dynamic can hinder transparency and affect investor-management relationships.
• Exceptional CEOs seek negative feedback to improve performance.

• An exceptional CEO seeks out negative feedback

  — Brad Gerstner

The role of SPVs in the market

• SPVs emerge in response to the growing size of companies and liquidity needs.

• These SPVs are emerging because these companies are getting so big

  — Brad Gerstner

• SPVs facilitate investment opportunities in large private companies.
• The creation of SPVs highlights market dynamics and liquidity demands.
• SPVs provide a mechanism for investors to access private company equity.
• The rise of SPVs addresses the pent-up interest in private company investments.
• Understanding SPVs is essential for navigating the private equity landscape.
• SPVs play a crucial role in the evolving investment environment.

The significance of the Schwab and Forge deal

• The Schwab deal with Forge marks a shift in private equity perception.

• This Schwab deal with Forge basically says to the world this is a real asset class

  — Brad Gerstner

• Private company equity is becoming recognized as a legitimate asset class.
• The deal signifies a transformation in how private equity is managed.
• This development has important implications for the investment landscape.
• Recognizing private equity as an asset class changes market dynamics.
• The Schwab and Forge deal highlights the evolving nature of private markets.
• Understanding this shift is crucial for investors and market participants.

Democratizing investment opportunities

• CEOs are interested in democratizing access to investment opportunities.

• They like the idea of democratizing access

  — Brad Gerstner

• Providing retail investors access to private companies is appealing to CEOs.
• This trend reflects a significant shift in the investment landscape.
• Democratizing investment opportunities aligns with broader market trends.
• CEOs recognize the value of including retail investors in private company growth.
• This approach offers new opportunities for ordinary Americans to participate.
• The trend towards democratization impacts both companies and investors.

Impact of staying private longer on employees

• Staying private longer affects employee liquidity and wealth.
• Employees may be wealthy on paper but cash poor due to private status.
• This trend has significant implications for employee financial situations.
• Understanding the impact on employees is crucial for assessing market trends.
• The dynamics of private companies differ from public market pressures.
• Employees face unique challenges in private companies compared to public ones.
• The trend of staying private longer influences employee wealth and liquidity.
• Companies need to consider the financial implications for their employees.

Challenges of transparency in private markets

• Private investors may hinder transparency by telling management what they want to hear.

• Private investors are often selling to management teams

  — Brad Gerstner

• This dynamic can affect investor-management relationships and transparency.
• Understanding these challenges is crucial for navigating private markets.
• Transparency issues impact both investors and management teams.
• The sycophantic nature of private markets poses challenges for transparency.
• Addressing transparency issues is essential for improving private market dynamics.
• Exceptional CEOs actively seek negative feedback to enhance transparency.

The evolving landscape of private equity

• Private equity is gaining recognition as a legitimate asset class.
• The Schwab and Forge deal highlights this transformation.
• This shift has important implications for the investment landscape.
• Recognizing private equity as an asset class changes market dynamics.
• The evolving landscape of private equity impacts both companies and investors.
• Understanding this shift is crucial for navigating the investment environment.
• The rise of secondary markets and SPVs reflects changes in private equity.
• The evolving landscape offers new opportunities and challenges for investors.