F E A T U R E we must reassess our approach to corporate growth .
F E A T U R E we must reassess our approach to corporate growth .
Private companies have historically struggled to find an efficient mechanism for share trading and while there are some existing secondary market liquidity platforms , these rely on traditional public market infrastructure providers , such as brokers and other intermediaries , who levy charges based on transactional activity .
A pending development is the Private Intermittent Securities and Capital Exchange System ( PISCES ), which Chancellor Rachel Reeves has committed to establishing by May this year . Once introduced , it will enable the likes of the London Stock Exchange Group to operate a platform that would , in effect , allow a company to go public temporarily while providing access to a wider pool of investors before reverting to its private status .
However , there is some uncertainty about demand for PISCES and the practical costs of this platform also need to be resolved before the concept can be realised . We will wait until May to see what the final platform will look like , but , from what we know , PISCES will bring with it many of the obligations of being a publicly listed company . This includes
THE PRIVATE COMPANY SECTOR IS NOW 15 TIMES LARGER THAN THE PUBLIC . AND A LOT OF THESE PRIVATE COMPANIES FALL INTO THE SME CATEGORY .
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