By the time a hot company lists on the stock exchange, a lot of the growth has already happened. Pre-IPO AIFs aim to capture that final leg of private growth. These funds invest in late-stage companies that are 12 to 24 months away from going public.
The thesis is to enter at a private valuation and exit once the company lists and (hopefully) sees a “listing pop” or sustained public market appreciation. It offers a shorter lock-in period compared to early-stage VC funds and a clearer line of sight to liquidity, bridging the gap between private equity and public markets.
