Why interest is growing
More investors are turning to unlisted shares. The reason is simple: many of the most exciting companies stay private longer. The number of publicly listed companies in Sweden has decreased, while unlisted companies like Klarna and Trustly have grown to billion-dollar valuations without going public.
Advantages
- Early access — You can invest before the company goes public, often at lower valuations.
- Higher return potential — Historically, early investors in companies that later IPO have seen significantly higher returns than those who bought at IPO.
- Diversification — Unlisted shares often have low correlation with the stock market, which can reduce portfolio risk.
- Access to innovation — Many tech companies and disruptors choose to stay private during their fastest growth phase.
Risks to be aware of
- Illiquidity — It can be difficult to sell your position quickly.
- Information asymmetry — You have less insight into the company's financials.
- Valuation uncertainty — Without exchange trading, it's harder to know the "right" price.
Summary
Unlisted investments offer unique opportunities but require thorough analysis and patience. They work best as a complement to a diversified portfolio.