Long-Only Mutual Funds Sitting on Hundreds of Billions in Late-Stage Dry Powder

What was said

"When a company goes public and lockup expires, it moves out of that bucket. So this is going to be hundreds of billions of dollars of new late-stage demand that is coming back to the market after kind of being out of the market."

Gavin Baker revealed that major mutual funds including Fidelity, Baillie Gifford, and T. Rowe Price are maxed out on SEC-imposed private allocation limits and will unleash hundreds of billions in pent-up demand once current private holdings go public. Bailey Gifford was forced to sell SpaceX in 2024 due to these constraints. This represents a massive wall of capital poised to enter late-stage privates and new IPOs, potentially sustaining elevated valuations.