I am Taylor Sohns, CEO of LifeGoal Wealth Advisors, a Certified Investment Management Analyst (CIMA), and a Certified Financial Planner (CFP). Two private companies are now among the 14 largest companies on Earth by valuation. That single fact says a lot about where markets stand and where portfolios may need to evolve. The rise of Anthropic and SpaceX is pushing a question to the front of the line: do investors need private equity exposure to keep pace with the modern market?
“Company one grew revenue 80 times in the first quarter of this year alone. Not 80%, 8000%.”
Those numbers point to Anthropic, which is reportedly seeking to raise $50 billion at a $900 billion valuation. If reached, that valuation would place it among the 14 largest companies in the world. The second company is SpaceX, which Bloomberg reports has confidentially filed for an IPO that could value it at $1.75 trillion, enough to rank among the world’s top ten by size. These figures, and the speed at which they are being discussed, show how quickly the center of gravity can shift.
The New Scale of Private Companies
Private companies did not used to be this large. Most of the world’s value was captured on public exchanges, where ordinary investors could take part. Today, some of the most influential businesses are staying private longer and reaching immense size before ever listing.
Anthropic and SpaceX are the clearest examples of this shift. One is an artificial intelligence company racing to build and deploy large language models for businesses and consumers. The other is a launch and satellite communications company with global reach and a strong product pipeline. Each sits at the center of huge markets. Each has raised billions in private capital. Each now commands a valuation that rivals the largest public corporations.
As a portfolio manager, I watch these developments closely. The core issue for investors is simple: if some of the biggest and fastest-growing companies remain private, how do you get exposure to that growth?
View this post on Instagram
What These Valuation Targets Suggest
The numbers are striking and, at times, hard to process. But they do serve as a signal. They show that value is being built in places that regular investors cannot easily access.
- Anthropic: Reported target raise of $50 billion at a $900 billion valuation. The company is identified here as “company one.”
- SpaceX: Reported target valuation of $1.75 trillion if it lists publicly, as referenced by Bloomberg.
- Rankings: Those figures would place Anthropic roughly 14th and SpaceX roughly 7th globally by size.
- Ownership gap: Most investors who only own public stocks do not own either company.
These are not small gaps. They are chasms. When top-tier growth is locked inside private vehicles, many portfolios miss out on important drivers of returns. That is the challenge this moment presents.
Is Private Equity Becoming a Portfolio Necessity?
I use the word “necessity” carefully. No single asset class is right for everyone. Private equity, venture capital, and private placements carry real risks and long lockups. That said, the rise of private giants changes the calculus. A portfolio made only of public securities now risks missing entire categories of growth that could shape future performance — and for one growing alternative, explore the case for investing in private credit.
For years, investors gained exposure to growth through public tech leaders. That path is still valid. But some of the most transformative platforms may not reach public markets soon. SpaceX has built a dominant position in launches and runs Starlink, a fast-growing global satellite network. Anthropic is building next-generation AI systems for enterprise and consumer use. If companies like these remain private for longer, portfolios built without private assets can lag key market trends.
So the question is not whether private equity is “better.” The question is whether it gives access to growth you cannot find elsewhere. In many cases, the answer is yes.
How to Think About Private Exposure
Private investing is not an on-off switch. It is a spectrum. There are different ways to gain exposure, each with trade-offs in access, fees, risk, and liquidity. Before adding anything to a portfolio, clarity matters. What are you trying to achieve? What risk can you tolerate? How long can you hold?
Here are the core factors I consider as a manager and investor:
- Access and structure: Direct shares, secondary transactions, feeder funds, or diversified private equity funds each offer a different path in.
- Liquidity: Private holdings often cannot be sold quickly. Plan for multi-year lockups.
- Valuation: Prices are set in private rounds rather than public markets. Mark-to-market updates can be infrequent.
- Concentration: Single names can dominate outcomes. Diversification across strategies and vintages can help.
- Fees and carry: Understand management fees, performance fees, and any platform or fund costs.
- Dilution risk: Future financing rounds can change ownership percentages and rights.
- Governance and information: Private companies disclose less. Information rights vary by deal.
- Exit path: Returns depend on realistic exits: IPO, acquisition, or secondary sale.
None of this is a reason to avoid private markets on principle. It is a reminder to size positions thoughtfully, stay diversified, and set expectations for the holding period and reporting cadence. A well-built plan is more likely to hold up under stress.
What Makes These Two Companies Different
Anthropic and SpaceX stand out for a few reasons that matter to investors weighing exposure.
First, scale is here now. We are not talking about early-stage startups with modest traction. We are looking at companies that may rank among the largest on Earth by value. That kind of scale is rare in private markets and speaks to the depth of capital ready to back them.
Second, they sit at the front of large addressable markets. AI models and tools could reshape work and consumer applications. Satellites and launch services are core to communications, defense, and commercial operations. These markets are long-term and global.
Third, both companies attract intense attention from regulators, customers, and competitors. That brings risk, but it also brings validation. You do not see this level of focus unless a company is central to big shifts in technology and industry.
Finally, both companies carry strong founder influence. Leadership can accelerate execution and product cycles. It also adds key-person risk. As an investor, I weigh both sides.
What the Ownership Gap Means for Everyday Investors
If your portfolio holds only public stocks, bonds, and cash, you likely do not own Anthropic or SpaceX. You may own suppliers, partners, or rivals. But direct exposure to these firms often requires access to private placements or specialized funds.
That is the gap. Over time, if private leaders continue to grow, the performance spread between investors with and without private exposure could widen. That does not mean every investor should jump in. It does mean the decision deserves attention, a plan, and a review of options.
How I Approach This as a Manager
I believe in transparency. LifeGoal clients and I hold positions in SpaceX and Anthropic through private channels. That ownership shapes my view. It does not change the need for prudence. My approach starts with goals, risk limits, and liquidity needs, then moves to specific access vehicles and sizing rules. I prefer to use guardrails: percentage caps per issuer, per strategy, and across vintages. I also plan for slow information flow. Private assets require patience and a long horizon.
When evaluating deals, I focus on three questions:
- Is the business model clear and supported by current demand?
- Does the valuation reflect realistic growth and margins?
- Is there a credible path to liquidity within the investment horizon?
For these two companies, the demand picture is strong. Valuations are ambitious. Liquidity paths exist but may take years. That mix suits some investors and not others. Fit matters more than headlines.
Reading the Headlines Without Losing the Plot
Big numbers can overwhelm sound judgment. I try to translate them into portfolio terms. If a single private name could reach a top-ten global size, it could move markets. It can also add volatility to private holdings if the price is based on a lot of future success. Balance is the goal. Private exposure can complement public holdings, not replace them.
“Never have private companies been so large. Is private equity now becoming a necessity in portfolios?”
That question is fair. My answer is: for many investors, some private exposure now plays a useful role. The size and impact of private leaders argue for inclusion. The risks argue for caution, sizing discipline, and diversification.
Practical Next Steps for Interested Investors
If you are considering private exposure, move methodically. Define your goals first. Then review access points that match your net worth, accreditation status, and time horizon. Build a watchlist of names and strategies. Do not overconcentrate on a single theme. And do not sacrifice emergency liquidity to chase private returns.
Set reporting expectations early. Private valuations do not update daily. That can be a feature, not a flaw, because it limits noise. But it also means you must measure progress differently. Monitor product milestones, customer growth, and financing activity. Treat each round as new information, not a scoreboard.
The last step is simple: revisit your plan as facts change. If an IPO draws near, recheck your exit plan. If a company raises at a higher or lower valuation, revisit your thesis. Flexibility beats rigidity in private markets.
The rise of Anthropic and SpaceX tells a clear story. Some of the world’s most valuable companies are now private. If you want exposure to their growth, your portfolio needs to reflect that reality. Thoughtful access can help. Discipline will matter even more.
Frequently Asked Questions
Q: How can I get exposure to private companies if I am not accredited?
Options may include interval funds, registered funds with private sleeves, or public companies with meaningful stakes in desired names. Minimums, fees, and liquidity differ across vehicles.
Q: What are the biggest risks with private equity in a diversified portfolio?
Illiquidity, valuation uncertainty, long holding periods, and concentration are the primary risks. Fees can also reduce net returns. Careful sizing and diversification help manage these issues.
Q: Do I need private investments to reach my financial goals?
Not always. Many investors can meet goals with public markets, cash, and bonds. Private assets can add growth potential, but they require a longer horizon and higher risk tolerance.
Image Credit: Tima Miroshnichenko; Pexels
