Unlocking Liquidity

Private markets are entering a new phase of price discovery. The gap between what sellers want and what buyers are prepared to pay is widening across venture capital, private equity and secondary markets. Higher interest rates, reduced liquidity and more disciplined investor behaviour are reshaping valuations and changing how private transactions get done.

We explore why bid-ask spreads are growing, how this is impacting private companies and investors, and why liquidity structure is becoming increasingly important in today’s market environment.

Liquidity in private markets isn’t just about exits anymore. It’s about structure, transparency and realistic pricing.

Private markets are expanding — but access isn’t keeping pace.

As more companies remain private and institutional capital continues to flow into unlisted assets, investors are facing a growing challenge: navigating an increasingly fragmented deal landscape. Opportunity is abundant, but visibility is uneven, and access often depends on networks rather than structure.

This shift is driving a new phase in private market infrastructure, where platforms are emerging to bring greater consistency, transparency and control to deal distribution — without losing the flexibility that defines private markets.

The idea that private markets are “lightly regulated” is one of the most persistent misconceptions in investing.

In reality, private capital operates within a highly structured regulatory framework, particularly in Australia, where ASIC oversight, fundraising rules, and investor qualification requirements shape every transaction. The difference is not less regulation, but a different form of it, one that places greater responsibility on wholesale and sophisticated investors.

As private markets continue to grow and institutional capital flows increase, understanding this distinction is becoming critical.

Defence technology is no longer a niche allocation. It’s becoming institutional.

What was once dominated by large primes and government procurement cycles is now being reshaped by venture-backed companies, sovereign capital and private investors seeking exposure to long-term structural themes.

Private markets are evolving. As companies stay private longer and valuation gaps persist, structured equity is emerging as a powerful solution to get deals done without forcing compromise on price alone.

From preferred equity and convertibles to performance-linked structures and secondary liquidity solutions, investors are increasingly negotiating terms, not just valuations. The result is a more sophisticated approach to capital that better aligns risk, return and timing across both founders and investors.

How do you value an asset when there is no live market price? In 2026, that question has become even more complex as widening valuation gaps emerge across private markets. Sellers remain anchored to prior funding rounds, buyers are demanding sharper discounts, and secondary markets are increasingly where real price discovery occurs.

As companies stay private for longer and investor expectations evolve, the traditional reliance on IPOs and trade sales is giving way to a more structured, intentional approach. Liquidity is no longer binary. It is becoming continuous, controlled and increasingly central to both investor strategy and company capital management.

Over the past decade, investors have operated in a market defined by cheap capital, rising valuations and abundant liquidity. But that environment is changing. Inflation is proving more persistent, capital is becoming more selective, and traditional portfolio assumptions are being tested in real time.

As demand for AI compute accelerates, data centres and digital infrastructure are rapidly transitioning into institutional-grade real assets, underpinned by physical constraints, long-term contracts and structural growth drivers. For sophisticated investors, this shift presents a compelling opportunity to access infrastructure-like characteristics within a technology-driven sector.

Due diligence is no longer what it used to be. The traditional model of spreadsheets, static reports and retrospective analysis is being replaced by something far more dynamic. Artificial intelligence, real-time data and new analytical tools are reshaping how investors assess risk, evaluate founders and uncover opportunity.