From Yahoo Finance: 2025-03-20 18:30:00

Senior Baillie Gifford fund manager, Peter Singlehurst, says being a public company is challenging due to reporting requirements and shareholders with conflicting interests. Staying private longer can help build a better business. He highlights the burden of public disclosure and the risk of competitors gaining insight into operations.

Singlehurst emphasizes that public ownership can lead to misaligned shareholder interests and increased scrutiny, limiting a company’s strategic flexibility. Baillie Gifford’s investments in private companies like ByteDance and SpaceX demonstrate the benefits of private ownership. The evolution of secondary rounds provides liquidity options for private investors, making staying private more appealing.

While Tim Sweeney of Epic Games noted the advantages of remaining private to Singlehurst, he also acknowledged the benefits of going public for certain business needs. Reasons for going public include acquiring other companies, engaging with regulators, or needing liquidity. However, recent stock market fluctuations, like Tesla’s decline, show the risks of being a public company.

Read more: It’s ‘really hard’ to be a public company right now, a senior fund manager says