Keep pulling the thread on Kevin Moss.
Major private company failures like WeWork, Theranos, and FTX can be attributed to poor governance.
SpaceX was founded in 2002 and grew to a trillion-dollar business while remaining a private company.
The trend over the last 15 to 20 years is that companies are staying private for much longer, causing public market investors to miss out on their primary growth phases.
Many high-quality private companies may never go public, limiting investor access.
The PrivateShares Fund manages risk by sizing positions according to their risk profile; companies with higher potential upside or greater cash burn receive smaller allocations.
The PrivateShares Fund's portfolio is invested across 21 different sectors.
The PrivateShares Fund avoids investing in companies with binary outcomes, such as those in the biotech sector.
In private company evaluation, management quality is more important than product-market fit because execution is paramount.
The PrivateShares Fund's valuation framework uses public comparables, growth margins, company financials, and marks from other public funds holding the same positions.
Small, statistically insignificant secondary market transactions, such as an employee selling a small stake at a large discount, can create misleading valuation signals.
The PrivateShares Fund adheres to its fundamental valuation framework and does not chase investments where the narrative outpaces the financials, a lesson learned from the 2020-2021 market.
The PrivateShares Fund's exit strategy for a company that goes public is to opportunistically sell the position over time after the lockup period to realize gains and recover costs.