'The plumbing isn't broken': Goldman Sachs' CEO says WeWork's failed IPO could improve private markets
WeWork's collapsed initial public offering isn't proof that private markets are broken, and it could even change them for the better, Goldman Sachs CEO David Solomon said on the bank's third-quarter earnings call. "I think the IPO process is alive and well in the United States." Solomon predicted the WeWork fiasco could fuel a shift towards smaller investments, faster flotations, and greater transparency in private markets. "We are going to see a rebalancing of this process of private capital formation, the size and the magnitude of that private capital formation and the period of time with respect to which people get to the public markets," Solomon said. Goldman Sachs — one of the top underwriters for WeWork's IPO — revealed an $80 million write-down on its stake in the company this week. However, the bank said the investment remains profitable.