MORGAN STANLEY AT WORK
Morgan Stanley at Work is helping to create a new roadmap for private and public companies seeking to generate liquidity
The route to IPO is a complicated one – especially given the current climate , as the economy slows and companies are under increasing pressure to scale while maintaining more modest financial constraints than they were previously afforded .
When a private company seeks to go public , it usually means one of three things : firstly , a company is seeking to raise capital ; secondly , its board is planning to provide liquidity for investors and employees ; and , finally , there ’ s a desire to raise brand awareness and strengthen market position in the eyes of potential customers .
The route to an IPO has often been seen as a key milestone in a company ’ s development in the global marketplace .
But in recent years – helped along by some regulatory changes and market factors – many companies are choosing to delay their route to the public markets and instead work on accessing capital through venture capital and growth equity investors to maintain their private company status .
Capital in private and public markets According to Kevin Swan , Co-Head of Global Private Markets for Morgan Stanley at Work , these days the average time for a startup company , from launch to make the move to go public , is now over 12 years .
Swan , who studied as an engineer specialising in mechatronics – a
multidisciplinary field that exists at the intersection of mechanical , electrical and computer engineering – got swept into the financial world through his early career experiences in startup companies . The path led him into venture capital and later to a company called Solium Capital , which was then acquired by Morgan Stanley in 2019 .
Swan ’ s background has been instrumental in his understanding of the various reasons underscoring certain companies ’ decision to choose an IPO route or remain as private entities .
The delay in going public , he explains , is mainly due to changes in the regulatory
32 March 2023