Piper Sandler's Expansion into Private Markets: Liquidity Solutions for High-Growth Companies and Illiquid Assets

In 2025, Piper Sandler has emerged as a pivotal player in addressing the growing demand for liquidity solutions in private markets, particularly for high-growth companies and illiquid assets. This strategic shift reflects a broader industry trend toward unlocking value in non-publicly traded enterprises, where traditional capital markets often fall short. By leveraging its expertise in capital markets and strategic acquisitions, Piper Sandler is positioning itself to bridge the gap between private equity and public market liquidity, offering tailored solutions for investors and companies alike.

Strategic Expansion into Private Markets

Piper Sandler's foray into private markets began with the launch of a dedicated initiative to facilitate trading in equity shares of private companies. This move was bolstered by the recruitment of three seasoned professionals-, , and David Ilishah-who bring over two decades of combined experience in private securities transactions. Their expertise enables the firm to design and execute liquidity strategies for high-growth private businesses, allowing investors to monetize illiquid positions before these companies pursue initial public offerings (IPOs). This initiative aligns with the firm's broader goal of democratizing access to private market opportunities while mitigating the risks associated with illiquidity.

The firm's approach is not limited to transactional execution. Piper Sandler has also demonstrated a commitment to strategic advisory, . While the deal primarily strengthens Adobe's digital marketing capabilities, Piper Sandler's endorsement of the acquisition. This analytical rigor is critical for private firms seeking to optimize their capital structures and prepare for eventual public market entry.

Third-Party Validations and Market Impact

Piper Sandler's strategies have garnered attention from industry analysts and investors, who view the firm's initiatives as a response to evolving market dynamics. For instance, the firm's upgrade of GCM Grosvenor (GCMG) to Overweight, , underscores its ability to assess macroeconomic trends and their implications for alternative asset managers. This move was predicated on favorable regulatory conditions and anticipated Federal Reserve rate cuts, illustrating how Piper Sandler integrates macroeconomic insights into its liquidity solutions.

Similarly, the firm's sustained Overweight rating for Tamboran Resources Corporation reflects its focus on companies with scalable infrastructure and international market access, even amid operational uncertainties. By emphasizing Tamboran's natural gas resource potential and strategic infrastructure advancements, Piper Sandler has validated its approach to balancing risk and growth in illiquid assets. These examples demonstrate the firm's capacity to identify undervalued opportunities and provide actionable insights for stakeholders.

Case Studies and Operational Effectiveness

While direct case studies on private company liquidity solutions remain limited, Piper Sandler's track record in public market analysis offers indirect validation of its methodologies. For example, the firm's adjustment of Arthur J. Gallagher's (AJG) price target to $295 following a quarterly performance shortfall highlights its responsiveness to short-term metrics. Conversely, its elevation of Alphatec Holdings' (ATEC) , even in unprofitable firms with stable operations. This dual approach-balancing immediate performance with future scalability-mirrors the challenges faced by private companies seeking liquidity solutions.

In the pharmaceutical sector, Piper Sandler's raised price target for Arrowhead Pharmaceuticals , following FDA approval of its drug Redemplo, further illustrates its ability to evaluate high-risk, high-reward assets. This case study, though public-facing, aligns with the firm's broader strategy of identifying transformative innovations in illiquid markets.

Conclusion

Piper Sandler's expansion into private markets represents a calculated response to the liquidity challenges faced by high-growth companies and their investors. By combining strategic hiring, macroeconomic analysis, and sector-specific expertise, the firm is well-positioned to offer innovative solutions that bridge the gap between private and public markets. While direct case studies on private company liquidity remain sparse, the firm's public market successes and third-party validations suggest a robust framework for addressing illiquidity. As the private equity landscape continues to evolve, Piper Sandler's initiatives may well set a new standard for liquidity solutions in 2025 and beyond.