, 5 tweets, 1 min read Read on Twitter
This is a good question, and deserves an answer.

The short version of this is that neither party to the transaction wants this to happen.

Slightly more detail:
Should companies want to increase their cost of capital? That's a hard sell.

Should companies want to trade cheap, permissive capital with more expensive, more meddlesome capital?

Should existing investors want to be diluted by new investors who *don't offer clear value*?
You might think "Well, long-term perspective is worth something.", which is both squishy and assumes that the new investors have a long-term perspective.

This is not obviously a correct assumption. Maturity transformation is a technology available to the finance industry.
If you dangle a tens-of-percent discount on, without loss of generality Google, to investors willing to endure a 5 year lockup, Goldman will have disaggregated that security into the two components "Discounted Google" and "Lockup" and sold them to willing counterparties. In days.
If you don't dangle a tens-of-percent discount on this, it's just "Can I interest you in a share class which is strictly worse than common?"
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