What is the one caveat of an IPO exit?

• It can only be pursued when the sponsor is willing to sell the position below its cost basis
• It lets the sponsor convert its entire stake to cash on the pricing date itself, making it easily the quickest route to a full exit
• It removes the company's ongoing public reporting and disclosure obligations the moment its shares begin trading on the exchange
• It is not a clean full exit: lock-ups and gradual selldowns mean the stake is monetized over time, exposed to price risk
• It locks in the single highest achievable valuation, since public markets consistently pay more than any strategic buyer ever would