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Passive Funds Don’t Negotiate
As some of the world’s largest private companies move closer to listing, it’s worth pausing to consider how investors gain exposure. In this piece, we explore what this means for passive funds, and why the mechanics behind index investing are particularly relevant in the current environment.
Three private companies with a combined value approaching $3.5 trillion are moving closer to public listings: SpaceX, OpenAI and Anthropic. This represents a rare clustering of very large IPOs in two of the most prominent sectors of the past decade: artificial intelligence and private space exploration.
The most important point for investors is not the technologies or opportunities themselves, but what happens when companies of this size list, and how index funds are required to respond.
