The Unicorn Repricing | Stale Marks, the Liquidity Veto, & the Allocator's Private-Market Reckoning
The Unicorn Repricing | Stale Marks, the Liquidity Veto, & the Allocator's Private-Market Reckoning
A Stanford database now counts hundreds of “zombie” unicorns. The headcount is the symptom. The story underneath it is a private-market repricing that allocators have spent two years carrying at par.
The Economist this week gave a name to something LPs have felt in their net asset values for two years: the zombie unicorn — a company once marked above $1bn, now a shadow of that figure.The zombie count is a lagging indicator. The leading indicator is what private marks will look like once the 2021 vintage is forced to transact. The undead are not a curiosity at the edge of the portfolio — they are a preview of the repricing the whole private book has been deferring.
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