00:00So let's talk about the IPO window, the exit environment for P.E. overall.
00:04We know there's a lot of big IPOs due to come out later on this year.
00:07Everyone talks about SpaceX, OpenAI, Anthropic.
00:11Is demand really as strong as it appears, or is it just concentrated at the very top end for these
00:17giant, giant companies?
00:19You know, we're going to find out.
00:20I do think that what you said at the end is more likely the case,
00:24that a lot of the demand is going to get sopped up by the SpaceX's of the world.
00:29But we're going to see, because there are some good companies that are kind of growth at a reasonable value
00:34type of companies
00:35that are going to be coming public over the next year.
00:39And, you know, I think it'll be a really interesting thing for you to watch
00:43and for Bloomberg to watch to see if those things are going to be successful.
00:47I think in some instances they will be, but I am worried about the public market's health and depth
00:52for a lot of good companies that are not these super high-profile companies like SpaceX.
00:57Say more about that. What do you mean? What part are you worried about?
01:01Is it for the ordinary companies that are just trying to get out?
01:04Yeah, I think the reality is if you're a typical company, let's say you're a $2 to $5 million market
01:09cap business,
01:11there's not a ton of liquidity in your stock these days.
01:14I mean, you're relying a lot on index funds, quant funds.
01:17You don't have a lot of fundamental investors in those companies.
01:21You don't have a lot of research coverage.
01:23And there's volatility around quarterly results for those companies that can be very difficult to manage through.
01:31And so I do think that there are structural challenges in the public market that didn't exist 10 years ago.
01:37I mean, if you go back 10 years ago, most of your investors were fundamental investors.
01:41You could pick up the phone. You could talk to them. You could tell stories. You had good research coverage.
01:46All of that has changed. And it's something, I actually think it's something that business people need to look at
01:53more broadly.
01:53That perhaps they're not fully appreciating right now.
01:56Correct.
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