Why private companies matter more

In this episode of "Short Briefings on Long Term Thinking," Malcolm Borthwick interviews Peter Singlehurst, head of Baillie Gifford's private companies team, about the trend of companies staying private for longer. Peter attributes this to regulatory changes and a shift in founders' perceptions, who now value the focus and competitive advantage gained by avoiding the pressures of public markets. He clarifies that Baillie Gifford began investing in private companies with Alibaba in 2012 and explains their criteria for investing in private companies, emphasizing the importance of analytical skill set and being the right partner for the company's stage of development. Peter also challenges the perception that private companies are inherently riskier, highlighting that Baillie Gifford seeks great long-term opportunities regardless of whether a company is private or public, and prefers closed-ended investment vehicles for private company investments due to their long-term capital structure. The discussion also touches on the Shahalian Fund and how the COVID-19 pandemic has reinforced the potential in healthcare investments, particularly in areas like mRNA technology.