Stephanie Flanders

Those names have not been 100% illiquid.

The secondary market has been fascinating.

For transparency and context, you know, Betty Gifford came in for criticism by Saba Capital Management, right, a hedge fund.

Park that context.

But as the manager on the private side, how do you balance that, the timing of maybe trimming or taking advantage of liquidity moment, tender or otherwise, or not holding onto it and growing?

I think that's a really interesting observation, Ed.

That first wave of companies staying private for longer, I would say up to the 2015 stage, was driven by the provision of primary capital to fund companies' growth in the private markets.

What's led to these mega-cap private companies is that we're seeing more secondary market transactions happening, meaning that secondary market requirements can be solved whilst companies remain private.

We've seen that in the likes of SpaceX.

We've seen that in the likes of Databricks, in ByteDance, in Stripe.

And that is really enabling companies to put off these IPOs for a really, really long time.

Our job is to manage portfolios and selectively we will occasionally look to trim our positions in private markets if we're wanting to realize some of those gains, either to recycle into new holdings or distribute returns to our limited partners.

I'm really interested in how strong and influential you feel, Bailey, if it is.

With respect, Peter, I've broken a lot of news over the years on SpaceX, Andrew, or whatever.

But the composition of the cap table, like SpaceX, you've basically got founders fund, Fidelity, and Google, not necessarily in that order.

And like all late-stage growth rounds pre-IPO, the crossover investors want to come in.

They want to anchor a future IPO.

Do you have influence on the management at SpaceX?

Do you try and be constructive operationally in working with them in the direction they want to take the company?

So we try to focus our value-add capabilities on the things which are particularly pertinent to growth stage companies.