In a recent LinkedIn post, Michael Merlin explores a fundamental shift in how wealth is created within major companies, highlighting that significant value is now generated *before* businesses go public. This represents a departure from traditional investment models of previous generations, where the path to public markets was a primary driver of early wealth.
Merlin points out that contemporary high-value companies are increasingly choosing to remain private for extended periods. He notes:
“Companies like SpaceX, Stripe, Anthropic, and many others are staying private far longer than previous generations of businesses. Instead of racing toward an IPO, they’re raising billions in private capital, scaling their businesses, and creating significant value long before public investors have access.”
The Evolving Landscape of Private Investing
Merlin, in his post, frames this trend as a critical development for investors. He sat down with Barrett Cohn and Michael Sobel, co-founders of Scenic Advisement, on an episode of Financial Longevity to delve into the implications of this shift. The conversation covered several key areas, including the reasons behind the extended timelines for IPOs, the maturation of private secondary markets into a recognized asset class, and the increasing importance of structured liquidity solutions like tender offers.
According to Merlin, the dynamics of private investing have evolved significantly. The focus is no longer solely on identifying the next groundbreaking company at its inception. Instead, as he highlights:
“Private investing isn’t simply about getting into the next big company early. It’s about understanding how these businesses are built, how liquidity is created, and why disciplined research still matters in a rapidly changing market.”
Key Drivers and Investor Considerations
The discussion also touched upon how artificial intelligence is not only fueling the demand for private capital but also reshaping the very locations where substantial wealth is being generated. Merlin emphasizes that for individuals who have prior experience building businesses, the current private market environment can feel remarkably familiar, suggesting a convergence of entrepreneurial and investment strategies.
Merlin argues that in this new era of private capital, relationships and thorough due diligence are paramount. This underscores the need for investors to adopt a more rigorous and informed approach. As he suggests:
“For investors who have built businesses themselves, this world often feels surprisingly familiar.”
Merlin concludes by inviting readers to listen to the full conversation, suggesting that it offers valuable insights for those interested in the evolution of private markets and their potential impact on long-term investment strategies. The conversation, as presented in his LinkedIn post, aims to provide a comprehensive overview of these complex market dynamics.
📝 About This Content
This article is based on insights shared by Michael Merlin on LinkedIn.
📅 Originally posted on August 10, 2026 | View original post on LinkedIn →