Private markets absorbed capital for two decades as investors fled daily mark-to-market volatility after the 2000-03 bear market. Companies stayed private longer, funded by VC megafunds and PE leverage, while public markets became warehouses for mature giants rather than greenhouses for growth.

That model is cracking. The AI boom demands capital beyond even the largest VC funds, and limited partners are hitting liquidity walls in ageing PE portfolios. Secondary sales and continuation funds offer temporary relief but reek of financial engineering and require constant new inflows.

The inevitable reversal has arrived. SpaceX, Anthropic and OpenAI must tap public markets for primary liquidity, while Alphabet issued its first shares in two decades. SpaceX already used its stock as currency for an all-share deal to acquire Cursor. Passive funds are participating as index providers accelerate inclusion.

The revival remains narrow. Mid-cap companies trapped in PE portfolios face a valuation chasm — public markets won't pay PE's marks. And investors re-entering public equities are about to relearn the cost of liquidity: prices move every day.