Private markets require context.
Private-company securities can involve material risks, limited information and restrictions that differ from listed markets.
Illiquidity
There may be no ready market, and a holder may be unable to sell when desired or at an expected price.
Transfer restrictions
Company approvals, rights of first refusal, contractual restrictions and other conditions may apply.
Information asymmetry
Private companies may provide less frequent or less standardised information than listed issuers.
Valuation uncertainty
Funding valuations, secondary indications and historical transactions may not represent current fair value.
Loss risk
Private-company investments can lose substantial value, including the entire amount invested.
Long time horizons
Liquidity events can take longer than expected and may never occur.
Independent assessment
Anyone considering a private-market transaction should conduct their own due diligence and obtain appropriate legal, tax, investment and other professional advice for their circumstances.