Beyond the Stock Exchange: Understanding the Power of Private Markets   

When we think about investing, most people picture the stock exchange or buying shares on the listed market. But increasingly, some of the strongest opportunities are happening before companies ever make it to a public listing.  At a recent Morrows Private Wealth seminar, Chris Molloy, our Chief Investment Officer, shared why private markets are an essential part of our diversified investment strategy and why investors who only focus on listed markets may be missing out. 

From 4 Years to 12 Years: Why Businesses Are Staying Private Longer 

In the late 1990s and early 2000s, high-growth businesses like Apple, Amazon and Netflix took just 3–4 years to go public. That meant every day, investors had access to their growth story relatively quickly. 

Fast forward to today, and the picture has changed. The median age of private companies is 12 years before listing, keeping their most significant growth locked away in the private market.

This means that: 

• Only 25% of US companies generating more than $100 million in revenue are listed. 

• The other 75% are still private, often continuing to scale and create value before considering an IPO. 

For investors limited to listed markets, that’s a lot of missed opportunity.

Why Companies Prefer to Stay Private 

There are several reasons why companies are delaying their IPOs: 

• Flexibility: Staying private avoids the reporting pressures and shareholder scrutiny of public markets. 

• Valuation: Founders can extract more value privately before transitioning to a listed market. 

• Market conditions: Uncertainty around inflation, interest rates and tariffs in recent years has kept many businesses private until conditions improve. 

The result? Private investors are the ones capturing growth that was previously available to public investors. 

What’s Driving Growth in 2025 and Beyond 

Despite recent headwinds, signs point to an exciting pipeline of opportunities: 

• Global IPO activity is up 21% to June 2025, suggesting companies are preparing to list as conditions stabilise. 

• Merger and acquisition activity has surged 30%, highlighting renewed confidence in private company valuations. 

• Artificial Intelligence (AI) businesses are scaling at record speed — reaching $30 million revenue in just two years, compared to five years for software-as-a-service (Saas) tech companies. 

These trends show that while IPO markets have been quiet in recent years, the growth engine in private markets is showing signs of running strong. 

Important Considerations for Investors 

While the opportunities in private markets are compelling, it is important to understand: 

• Not all opportunities are available to everyone. Access often requires working with experienced advisory firms, such as Morrows Private Wealth, which have established networks. 

• Private credit is illiquid. Unlike listed shares, your money is not quickly accessible, so you need to invest with a long-term mindset. 

• Managing risk is critical. At Morrows Private Wealth, we work with trusted portfolio managers who ensure investments are secured with senior secured debt, which gives our investors first priority to be repaid if a business fails, a crucial safeguard when investing in private credit markets. 

• Diversification is essential. Spreading investments across different businesses, sectors and regions reduces the risk of being overexposed to any one company or market trend. 

That’s why working with a trusted and experienced portfolio manager is essential. Our role is to provide access, manage risk, and align strategies with your personal circumstances and goals. 

Why This Matters for Your Portfolio 

Private markets aren’t just for institutions anymore. With the right strategy and guidance, individual investors can also gain exposure. The benefits include: 

• Accessing high-growth companies earlier in their lifecycle. 

• Diversifying beyond listed markets. 

• Positioning portfolios to benefit from future IPO activity. 

Is Your Portfolio Missing Out? 

The investment landscape has shifted. Companies are staying private longer, growth is happening earlier, and new industries like AI are accelerating the pace of opportunity. 

But accessing these markets safely requires experience, discipline and the right structures. 

Contact our team at Morrows Private Wealth to help you explore how private markets may fit into your personal investment strategy.