Market Insight Update: Lack of Transparency in the Private Markets

The private markets are full of abundant opportunities to invest in later stage growth narratives. While several investors pursue the flight towards quality names that have a $10B+ valuation and have significant amount of news coverage, other investors seek to invest in esoteric names where the risk is more but there is higher potential upside.

The latest pricing data and valuation aren’t always publicly disclosed especially in the market reset following 2023. To make things even more complicated, a select few new primary funding rounds that occur at significantly lowered valuations don’t include their latest valuation in the news. Using a quality broker dealer firm such as RainMaker Securities will allow counterparties to obtain the latest pricing and valuation along with supplementary due diligence articles in select cases such that they can make an informed decision on whether they would like to pursue a secondary sale.

While supply and demand tend to dictate the pricing of several late stage names in real time, historical pricing and company approved transfers are always changing due to the macro-economic and sector specific micro-economic environments. Much of this data isn’t publicly available so using a reliable broker dealer firm is paramount to obtain the latest guidance.