Investing in the Private Markets carries a much higher level of risk than investments in the Public Markets. You can learn more about the risks here.
One of the risks involved is the inability to sell your investment or receive a potential return until a liquidity event. Liquidity events can not be guaranteed. Investments in the Private Market do not have a secondary market, meaning there is the inability to sell your shares to someone else.
In the Public Markets, the secondary market would be selling your shares using your chosen broker at a price per share you desire, and another individual purchasing the shares at a price per share they indicate.
What is a "Liquidity Event"?
A liquidity event is an event that provides investors the ability to sell their investments. Liquidity events can not be guaranteed, nor can a given timeline for a certain company.
Generally, we estimate a 5-10-year holding period before you may be given the opportunity to sell your investment and receive a return.
Want to learn more on different types of liquidity events? Read this!
If your investment has become publicly listed (meaning that the company is now a publicly traded company) click here to learn more!