Creating liquidity in private markets is not about better tech like blockchain. The core challenge is one of market structure: finding a buyer when everyone wants to sell. Without a mechanism to provide a capital backstop during liquidity shocks, technology alone cannot create a functional secondary market.

Contrary to popular belief, staying private isn't always easier. The administrative burden of managing secondary share sales and controlling who gets on the cap table is a significant headache for CEOs, making an IPO an attractive solution for simplicity and control.

The growth of the private credit secondary market is primarily limited by a shortage of specialized, well-capitalized buyers, not a lack of sellers. As more dedicated funds with the appropriate cost of capital enter the space, they effectively "build the market," unleashing latent supply from LPs and GPs who previously lacked a viable exit path.

To solve the critical illiquidity problem for individual investors, Goldman Sachs operates a proprietary, quarterly secondary market developed over 20 years. This platform allows its wealth clients to list and sell their alternative investment positions, transacting over a billion dollars in NAV annually and providing a crucial liquidity solution.

The shift to longer private market cycles and secondary tender offers excludes retail investors until a high-priced IPO. Those who do access secondary markets often fly blind, making investment decisions based on hype ("vibes") without the financial transparency required in public markets.

Today’s private markets are undergoing a fundamental market structure change, much like public equities did with decimalization and ETFs. This suggests the current illiquidity and complexity are features of a maturing market, not just a temporary downturn.

Vested works directly with employees because startups find small, one-off secondary transactions burdensome due to legal fees and cap table complexity. However, this dynamic inverts at scale. Once Vested facilitates millions in transactions for a single company's stock, the startup has a strong incentive to partner on a formal liquidity program.

Serving thousands of individual investors requires a huge investment in "nuts and bolts" infrastructure for administration, processing, and reporting. This operational complexity and cost, not client-facing apps, is the primary hurdle for GPs entering the retail space, moving from analog processes to complex digital systems.

In the secondary market, being the highest bidder isn't enough to win premier deals. Success often hinges on becoming a long-term strategic partner to the General Partner (GP). This means offering primary capital for future funds or other relationship-based value beyond a single transactional price.