Baillie Gifford
Founders now understand that staying private allows management to maintain focus and gain a competitive edge
companies fall on the other side of what Singlehurst calls “ the very artificial boundary of the initial public offering ( IPO ) line ”. He is clear about what his team offers . It doesn ’ t include the operational involvement in company formation or initial strategy-building . Early-stage venture capitalists are better placed to do those . But once companies begin thinking about becoming public , this is when Singlehurst ’ s team can add value : “ At the stage we invest , the companies are normally generating substantial revenues . Many of the companies are profitable , fast-growing and have proven product-market fit .”
Introducing colleagues to the next generation of companies that could form the backbone of Baillie Gifford ’ s public market investments is part of the Private Companies Team ’ s remit . Singlehurst explains : “ When companies transition to the public markets , rather than having a couple of weeks to decide about an IPO of a company you ’ d never heard of , we ’ ve helped colleagues to build an understanding of these companies over years .” This is true of the eco footwear business , Allbirds . Once one of the team ’ s holdings , it is now a public business . When the company came to the public market , management
Issue 84 - May 2022 / 21 /