In this section, authors comment on economic and financial topics.

Today, many companies are postponing—or indefinitely delaying—their IPOs. This shift reflects a fundamental change in how business value is built and scaled. As asset managers, it requires us to rethink how we access long-term growth.

The average age of a company going public in the United States has risen to 14 years—an increase of over 50% since 2000.

IPO No Longer a Rite of Passage

Several factors have contributed to this trend, chief among them the rise of technologies that allow firms to reach critical scale without large capital infusions. 

At the same time, companies are increasingly wary of the burdens and short-term pressures that come with being publicly traded. As a result, going public is no longer viewed as an inevitable milestone on the path to maturity— a shift reflected in the fading prestige once associated with ringing the opening bell.

A New Investment Approach for a Changing World 

The growing number of companies staying private for longer presents a clear obstacle for retail investors who wish to gain early exposure to firms they believe will become tomorrow’s growth champions. 

This raises a key question: how can investors access the high-growth phases of companies—both before and after they go public? Furthermore, how can they gain exposure to firms that may never list at all? 

«Going public is no longer viewed as an inevitable milestone on the path to maturity.»

In the UK, investors have long benefited from a solution that remains relatively unknown in Switzerland: the investment trust. These closed-end, permanent capital vehicles have been a core feature of the British savings and wealth management landscape for over 150 years.

Many are listed on public exchanges, with some of the largest included in the FTSE 100. One example is the Scottish Mortgage Investment Trust—a globally diversified portfolio that invests in high-growth public and private companies, with a track record dating back to 1909. 

Why Investment Trusts Matter for Swiss Investors

Investment trusts offer a structural advantage: they can access illiquid assets thanks to their closed-end nature. They may also use leverage to enhance returns and can retain up to 15% of annual income to support dividend stability over time.

«We haven’t seen a shift of this magnitude in capital formation since the early 20th century.»

Baillie Gifford is the largest single provider of investment trusts. Over the past decade, the share of private holdings within these trusts has grown significantly—driven by early exposure to companies like Alibaba, SpaceX, Spotify, and ByteDance, well before their IPOs. 

In their modern form, investment trusts are comparable to holding companies such as Berkshire Hathaway. By purchasing shares in a trust, investors gain access to a professionally managed portfolio of both listed and unlisted equities. These vehicles can leverage their scale to reduce costs for individual investors while providing privileged access to compelling private assets. 

A Natural Fit for Long-Term Capital

Founders and management teams of private companies value investment trusts as long-term stakeholders. The depth of these relationships often allows trust managers to navigate obstacles with resilience and conviction. Entrepreneurs also appreciate that the financial strength of investment trusts can reduce the need for frequent fundraising rounds.

Even when a company does go public, trusts often remain shareholders, ensuring that their investors benefit from the company’s full growth trajectory.

We haven’t seen a shift of this magnitude in capital formation since the early 20th century. With more than $5 trillion now tied up in unicorns, late-stage private companies are no longer a niche segment—they’re a cornerstone of today’s global investment landscape. 

Today’s environment calls for a new kind of retail investor. Yet despite their origins in Victorian Britain, investment trusts have proven remarkably well suited to the complexities of the modern financial landscape.

Anna Bretschneider is Head of Switzerland at Baillie Gifford.

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