Late-Stage Private Markets Show Signs of Reacceleration as Private Shares Fund Reports Strong 1Q Sales and IPO Pipeline, with SpaceX as Largest Position

Key Terms

initial public offering (ipo) regulatory

An initial public offering (IPO) is the process by which a private company sells its shares to the public for the first time, allowing anyone to buy a piece of the company. It matters to investors because it provides an opportunity to invest early in a company's growth, potentially earning profits if the company becomes successful. Essentially, an IPO turns a private business into a publicly traded one, opening it up to a wider pool of investors.

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merger and acquisition (m&a) financial

Merger and acquisition (M&A) describes when one company buys another or two companies combine into a single business. Investors care because these deals can change a company’s future profits, debt, size and leadership — like two households moving in together to share expenses but also inheriting each other’s bills; the outcome can raise or lower a stock’s value depending on cost savings, added revenue and how the deal is financed.

s-1 regulatory

A Form S-1 is a detailed registration document filed with U.S. regulators when a company intends to sell shares to the public for the first time or raise new equity. It acts like a company’s full disclosure booklet — describing business operations, risks, finances and how the proceeds will be used — and matters to investors because it provides the primary, official information needed to judge the company’s prospects and risks before buying stock.

line of credit financial

A line of credit is a flexible borrowing arrangement that lets a company draw money up to a preset limit, repay it, and borrow again as needed—similar to a business credit card or an emergency tap on a savings account. It matters to investors because it shows how a firm manages short-term cash needs and growth funding without taking a single large loan; access, cost, and attached conditions can affect liquidity, interest expenses and financial risk.

assets under management financial

Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.

autonomous surface vessels (asvs) technical

Autonomous surface vessels (ASVs) are boats or ships that navigate and perform tasks on the water without a human onboard, using sensors, computers and remote controls much like a self-driving car on the ocean. Investors watch ASVs because they can lower operating costs, enable new services (surveying, cargo, data collection, patrols) and disrupt industries tied to labor, fuel and logistics, while also carrying technical, regulatory and safety risks that affect returns.

optical input and output (i/o) chiplet technical

An optical input and output (I/O) chiplet is a small, removable silicon module that converts between electrical signals inside a computer chip and light-based signals sent over optical fibers. Think of it as a compact translator that lets a processor talk to distant servers using light instead of metal wires, which boosts speed and cuts power for heavy data flows. Investors care because optical I/O chiplets can lower data-center costs, enable faster networking, and become a competitive advantage for companies building high-performance computing and communications hardware.

generative ai technical

Generative AI is a type of computer technology that can create new content, like text, images, or music, on its own. It’s important because it can produce realistic and useful material quickly, which could change how we create art, write stories, or even develop new products. Think of it as a smart robot that can invent and produce things almost like a human.

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• Fund surpasses $1.1B in assets
• SpaceX is largest portfolio position, with 19.3% of net assets
• Over 50% of portfolio tied to companies pursuing or discussing IPO, tender, or M&A activity; including 5 S-1 filings among top 20 holdings

NEW YORK--(BUSINESS WIRE)-- The Private Shares Fund (PRIVX/PIIVX), managed by Liberty Street Advisors, Inc. (Liberty Street), reported strong first quarter performance alongside an expanding pipeline of portfolio companies progressing toward potential IPO, tender, or acquisition events. The Fund’s largest holding, SpaceX, has been the subject of recent IPO-related developments, while several other key holdings, including Cerebras and Kraken, have advanced S-1 activity. These developments reflect increasing activity across late-stage private markets. All information is as of March 31, 2026, unless otherwise indicated.

Momentum Builds as Private Market Activity Develops

The update comes amid improving sentiment across private equity and venture markets. Over 50% of the portfolio (+$600 million in net assets) is tied to companies that have taken steps toward or have publicly discussed undertaking Initial Public Offering (IPO) or Merger and Acquisition (M&A) transactions, including notable companies such as SpaceX, Cerebras and Kraken.

Gross sales for the Fund totaled approximately $118 million for Q1 2026, representing the fifth strongest quarter in the Fund’s 12-year history. As of 3/31/2026, the Fund manages approximately $1.16 billion in assets.

While timing and outcomes remain uncertain, this pipeline reflects increasing momentum across late-stage private markets.

SpaceX Remains Largest Position

The Fund’s largest holding, SpaceX, represented approximately $224 million or 19.3% of Fund net assets, reflecting a company valuation of approximately $1.25 trillion. While there can be no assurance regarding the timing, occurrence, or valuation of any future transaction, recent market commentary has referenced a potential IPO valuation at or around $2 trillion with the IPO targeted to take place the week of June 15^th.

Strong Liquidity Profile Supports Portfolio Flexibility

The Fund enters the second quarter with a solid liquidity profile. After funding new investment opportunities and fulfilling 100% of 1^st quarter redemption requests, cash and cash equivalents totaled approximately $100M. Quarterly gross sales of $118 million have increased over the past several quarters, contributing to continued growth in assets under management.

Public security positions amounted to approximately $34M. The Fund also maintains a line of credit totaling $150M, which has never been drawn upon. In addition, SpaceX and the aforementioned IPOs and M&A transactions also serve as potential sources of future liquidity.

“The Fund performed extremely well over the last several, very difficult, years for venture and traditional private equity funds,” said Tim Reick, Liberty Street’s CEO & CIO. “We are pleased to be entering this period in strong financial condition with a more vibrant IPO calendar and promising prospects ahead.”

Key Focus: Artificial Intelligence (AI), Defense, Aerospace

The Fund continues to invest across a broad range of late-stage private companies, while increasing focus on areas driving the next phase of innovation, including artificial intelligence, defense, and aerospace. Reflecting this strategic breadth, over half of the top 25 holdings represent a variety of sectors and have additionally taken formal steps toward or publicly discussed undertaking an IPO or M&A transaction.

Recent portfolio additions highlight this evolving focus, alongside existing exposure to companies advancing critical technologies across these industries. The Fund recently added two companies advancing in their respective fields:

• Ayar Labs (artificial intelligence, 2015) — developing a critical component of AI and high-performance computing with an optical input and output (I/O) chiplet that replaces traditional copper-based interconnects with light-based data links, vastly accelerating data movement critical to the growth of generative AI.
• Saronic (defense, 2022) — focused on naval warfare and defense operations with the most advanced and capable autonomous surface vessels (ASVs).

“These additions reflect our emphasis on areas we believe are driving the next phase of innovation,” said Kevin Moss, Managing Director and Portfolio Manager. “Artificial intelligence and defense will continue to be focus areas, alongside our existing emphasis on aerospace, as we move forward.”

About Liberty Street Advisors, Inc.

Liberty Street Advisors, Inc. (“Liberty Street”) is an SEC registered investment advisor. The firm is located in New York City and launched its first fund in 2007. Liberty Street provides access to valuable and timely investment strategies designed to help investors and financial advisors meet the challenges of today’s market environment. As of 3/31/26, Liberty Street manages four open-end mutual funds, the Private Shares Fund, and a non-U.S. fund with total assets under management of over $1.9 billion. For further information, visit https://libertystreetfunds.com/.

About The Private Shares Fund

The Private Shares Fund is a 1940 Act registered, closed-end interval fund that invests in a portfolio of private, late stage, growth companies. Traditionally, such access to private companies has only been available to institutional and high net worth investors through high-minimum, complex and paperwork laden private placement vehicles. The Private Shares Fund provides access to such companies without accreditation at low investment minimums, with a daily NAV, a quarterly repurchase program, no performance fees and simple 1099 tax reporting.*

To learn more about the Fund’s current holdings, total return performance, investment process, our team, and more, please visit the Fund’s website at www.privatesharesfund.com.

The Fund’s top ten holdings represented 50.71% of the portfolio as of 3/31/2026: SpaceX, Grubmarket, Nanotronics, Motive, Tradeshift, Dataminr, Databricks, Upgrade, Lime and Betterment.

*The investment minimums are $2,500 for the Class A Share and Class L Share, and $1,000,000 for the Institutional Share, which is waived for fee-based asset management programs. Shares in the Fund are highly illiquid, and can be sold by shareholders only in the quarterly repurchase program of the Fund. Due to transfer restrictions and the illiquid nature of the Fund’s investments, you may not be able to sell your shares when, or in the amount that, you desire. Though there is no performance fee, other fees and expenses apply to the Fund.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus with this and other information about The Private Shares Fund (the "Fund"), please visit the Fund’s website at www.privatesharesfund.com, or call 1-855-551-5510. Read the prospectus carefully before investing.

Investment in the Fund involves substantial risk. The Fund is not suitable for investors who cannot bear the risk of loss of all or part of their investment. The Fund is appropriate only for investors who can tolerate a high degree of risk and do not require a liquid investment. All investing involves risk including the possible loss of principal.

Shares in the Fund are highly illiquid, and can be sold by shareholders only in the quarterly repurchase program of the Fund which allows for up to 5% of the Fund’s outstanding shares at NAV to be redeemed each quarter. Due to transfer restrictions and the illiquid nature of the Fund’s investments, you may not be able to sell your shares when, or in the amount that, you desire. The Fund intends to primarily invest in securities of private, late-stage, venture-backed growth companies. There are significant potential risks relating to investing in such securities. Because most of the securities in which the Fund invests are not publicly traded, the Fund’s investments will be valued by Liberty Street Advisors, Inc. (the “Investment Adviser”) pursuant to fair valuation procedures and methodologies approved by the Board of Trustees, as set forth in the prospectus. As a consequence, the value of the securities, and therefore the Fund’s Net Asset Value (NAV), may vary.

There are significant potential risks associated with investing in venture capital and private equity-backed companies with complex capital structures. The Fund focuses its investments in a limited number of securities, which could subject it to greater risk than that of a larger, more varied portfolio. There is a greater focus in technology securities that could adversely affect the Fund’s performance. The Fund’s quarterly repurchase policy may require the Fund to liquidate portfolio holdings earlier than the Investment Adviser would otherwise do so and may also result in an increase in the Fund's expense ratio. Portfolio holdings of private companies that become publicly traded likely will be subject to more volatile market fluctuations than when private, and the Fund may not be able to sell shares at favorable prices. Such companies frequently impose lock-ups that would prohibit the Fund from selling shares for a period of time after an initial public offering (IPO). Market prices of public securities held by the Fund may decline substantially before the Investment Adviser is able to sell the securities.

The Fund may invest in private securities utilizing special purpose vehicles (“SPV”s), private investments in public equity (“PIPE”) transactions where the issuer is a special purpose acquisition company (“SPAC”), and profit sharing agreements. The Fund will bear its pro rata portion of expenses on investments in SPVs or similar investment structures and will have no direct claim against underlying portfolio companies. PIPE transactions involve price risk, market risk, expense risk, and the Fund may not be able to sell the securities due to lock-ups or restrictions. Profit sharing agreements may expose the Fund to certain risks, including that the agreements could reduce the gain the Fund otherwise would have achieved on its investment, may be difficult to value and may result in contractual disputes. Certain conflicts of interest involving the Fund and its affiliates could impact the Fund’s investment returns and limit the flexibility of its investment policies. This is not a complete enumeration of the Fund’s risks. Please read the Fund prospectus for other risk factors related to the Fund.

The Fund is distributed by FORESIDE FUND SERVICES, LLC.

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements that are subject to risks, uncertainties and other factors that may cause actual results to differ materially. Statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this press release, words or phrases generally written in the future tense and/or preceded by words such as "will," "may," "could," "expect," "believe," "anticipate," "intend," "plan," "seek," "estimate," "preliminary" or other similar words are forward-looking statements.

Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors that could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. Any forward-looking statement made in this press release speaks only as of the date on which it is made. Factors or events that could cause actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not undertake any obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260421339941/en/

Aly Greengrass
Water & Wall
aly@waterandwall.com

Source: Liberty Street Advisors, Inc.