A Few Notable Investments
TSG’s Pre-IPO funds allow both individual and institutional investors to invest in late-stage, VC-backed private companies prior to a liquidity event (typically an IPO). TSG clients are able to acquire shares of pre-IPO companies much like purchasing public stocks, with the key difference being that pre-IPO shares are far less accessible to the general investing public. There are 2 characteristics that define a typical pre-IPO investment:
- Shares of the pre-IPO company must be acquired from an existing shareholder (typically company insiders or early investors) and are thus classified as secondary shares
- The pre-IPO company is in the later stages of its VC life cycle and is anticipated to experience a liquidity event within a short timeframe
Pre-IPO investments have surged over the last several years due to the attractive risk / reward proposition that is inherent in private equity / VC investing. By definition, pre-IPO companies are established, mature entities that already have significant financial backing as well as excellent growth prospects. By investing in a company prior to its listing on a major public exchange, TSG’s clients are able to invest at a discount to any public offering price, providing great potential to generate significant returns.
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