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Investors Will Evaluate Private IPO Strategies

Financial advisors are increasingly utilizing interval funds to access private capital markets ahead of new public listings.

Updated on Oct. 10, 2026 in Financial Planning

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Wealth managers are increasingly utilizing interval fund structures to provide client portfolios with exposure to high-growth private companies prior to initial public offerings. AI Illustration. Upload story photo >

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Wealth managers are adjusting investment strategies as companies stay private longer before initial public offerings. With firms like Anthropic targeting an October 2026 Nasdaq listing, advisors are seeking ways to gain exposure to high-growth private entities.

Why it matters

Companies are now typically over 11 years old before hitting public markets, meaning early growth often occurs away from public investors. This shift makes it harder for retail or managed accounts to participate in the initial valuation spikes common in earlier market cycles.

Financial advisors managed $2.2 trillion in private capital by year-end 2025, with $132 billion housed in interval funds. These funds typically facilitate periodic liquidity by buying back between 5% and 25% of shares.

The players

Anthropic

This is an artificial intelligence company that received a $965 billion valuation during a funding round in May 2026.

ABS Global Investments

Based in Stamford, Connecticut, this firm launched a specialized Pre-IPO & Growth Fund in February 2026.

SpaceX

This aerospace manufacturer and space transportation company raised $75 billion in a market debut in June 2026.

The details

Investors are using registered 40 Act fund structures that offer quarterly liquidity to reach private companies. This approach helps circumvent the traditional wait times for IPOs, which now see the average US company remain private for over 11 years.

Timeline

  1. Year-end 2025: Financial advisors held $2.2 trillion in private capital.

  2. February 2026: ABS Global Investments launched a Pre-IPO & Growth Fund.

  3. May 2026: Anthropic received a $965 billion valuation.

  4. June 2026: SpaceX raised $75 billion in a market debut.

  5. October 2026: Anthropic targets a potential Nasdaq listing.

Market Dynamics

The transition toward longer private life cycles, where the average firm is 11 years old at IPO, forces a restructuring of how capital is deployed. This trend mirrors a pivot away from public equity markets toward registered fund structures that hold private assets.

Retail and institutional investors may gain exposure to private growth through interval funds, though they should anticipate quarterly liquidity constraints. These investment vehicles provide a bridge to pre-IPO assets that were previously largely restricted to private equity.

The takeaway

As companies wait longer to go public, wealth managers are increasingly using interval funds to offer clients earlier access to private capital. Investors should carefully review the quarterly liquidity terms and specific buyback ranges when considering these funds for their portfolios.

What happens next

Anthropic is currently targeting a Nasdaq listing in October 2026, which will serve as a significant test for late-stage private market valuations.

Further reading

Learn more about managing portfolio liquidity and asset allocation in the Financial Planning section.

Source note: This article includes information reported by InvestmentNews.

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